Homes within walking distance of neighborhood amenities, such as schools, shopping, and parks, can fetch an average of $77,668 more than comparable properties further away, according to a new Redfin study. However, more buyers are being priced out of such a high premium, and therefore, the premium has dropped 2.3% since 2016, researchers note.
“The premium drop is tied to affordability,” says Redfin Chief Economist Daryl Fairweather. “Properties that are more affordable are seeing the most demand and price growth right now, and homes in less walkable neighborhoods often fall into this category. There just aren’t as many people who can afford walkable neighborhoods. Many house hunters are also willing to move to less walkable neighborhoods in order to get single-family homes.”
Home prices in neighborhoods that are dependent on cars rose 4.3% year over year in July to a median of $312,100 compared to a 2.3% annual increase in areas not dependent on cars, the study shows.
Source: “How Much Does Walkability Increase the Value of a Home?” Redfin Blog (Jan. 30, 2020)
