The impact of walkable environment on single-family residential property values
Keywords:Transport, Land Use, Walk Accessibility
AbstractDue to the impact of urban sprawl, the need for responsible property investing, and the emerging evidence supporting the linkage between walkable environment (in terms of built environment and walk accessibility) and residential property value, there is a critical need to develop systematic methodologies to quantify the impact of walkable environment on residential property value. This study provides a new generalized dissimilarity index for quantifying land-use mix, a key component of built environment, and a new method for measuring a property’s walk accessibility and then links them to residential property values. Ordinary least squares (OLS) regression models are used to validate these methods by examining the empirical property data in Eastern Adelaide, Australia. The results of the OLS models show that the proposed dissimilarity index and property walk-accessibility method outperform other commonly used land-use mix quantification and walk-accessibility methods in estimating single-family residential property values in terms of the goodness-of-fit and explanatory power. This study provides insights for investors to understand the impact of walkable environment on single-family residential property values to enable them to make more informed decisions on property investment, and for planners to design neighborhoods featuring better walkable environments.
Adelaide O-Bahn. 2014. O-Bahn Busway Weekly Schedule. https://www.adelaidemetro.com.au/Timetables-Maps/Special-Services/Adelaide-O-Bahn.
Aurand, A. 2010. Density, housing types and mixed land use: Smart tools for affordable housing? Urban Studies 47(5): 1015–1036.
Boyle, A., C. Barrilleaux, and D. Scheller. 2013. Does walkability influence housing prices? Social Science Quarterly 95: 852–867.
Brunsdon, C., S. Fotheringham, and M. Charlton. 2003. Geographically Weighted Regression: The Analysis of Spatially Varying Relationships. Hoboken, NJ: John Wiley and Sons.
Cerin, E., D. J. Macfarlane, H. H. Ko, and K. C. A. Chan. 2007. Measuring perceived neighborhood walkability in Hong Kong. Cities 24(3): 209–217.
Cervero, R., and K. Kockelman. 1997. Travel demand and the 3Ds: Density, diversity, and design. Transportation Research Part D: Transport and Environment 2(3): 199–219.
Chen, Y., S. Ravulaparthy, K. Deutsch, P. Dalal, S. Y. Yoon, T. Lei, K. G. Goulias, R. M. Pendyala, C. R. Bhat, and H. H. Hu. 2011. Development of indicators of opportunity-based accessibility. Transportation Research Record 2255: 58–68.
City of Prospect Planning Department. 2014. Historic zone and local heritage places. http://www.prospect.sa.gov.au/webdata/resources/files/City%20of%20Prospect%20Historic%20(Conservation)%20Zone%20and%20Local%20Heritage%20Places%20-%20Design%20Guidlines.pdf.
Congress of New Urbanism. 2014. What is Congress of New Urbanism? http://www.cnu.org/who_we_are.
Dai, D. 2011. Racial/Ethnic and socio-economic disparities in urban green space accessibility: Where to intervene? Landscape and Urban Planning 102(4): 234–244.
Ewing, R., and R. Cervero. 2010. Travel and the built environment: A meta-analysis. Journal of American Planning Association 76(3): 265–294.
Ewing, R., and F. Rong. 2008. The impact of urban form on US residential energy use. Housing Policy Debate 19(1): 1–30.
Frank, L. D., B. Stone, and W. Bachman. 2000. Linking land use with household vehicle emissions in the central Puget Sound: Methodological framework and findings. Transportation Research Part D: Transport and Environment 5(3): 173–196.
Frank, L. D., J. F. Sallis, B. E. Saelens, L. Leary, K. Cain, T. L. Conway, and P. M. Hess. 2010. The development of a walkability index: Application to the neighborhood quality of life study. British Journal of Sports Medicine 44(13): 924–933.
Glaeser, E. L., and J. Gyourko. 2003. The impact of building restrictions on housing affordability. Federal Reserve Bank of New York Economic Policy Review 9: 21–39.
Kok, N., P. Monkkonen, and J. Quigley. 2014. Land use regulations and the value of land and housing: An intra-metropolitan analysis. Journal of Urban Economics 81: 136–148.
Lee, C., and A. V. Moudon. 2006. The 3Ds + R: Quantifying land use and urban form correlates of walking. Transportation Research Part D: Transport and Environment 11(3): 204–215.
Levine, J., and A. Inam. 2004. The market for transportation-land use integration: Do developers want smarter growth than regulations allow? Transportation 31: 409–427.
Leyden, K. M. 2003. Social capital and the built environment: The importance of walkable neighborhoods. American Journal of Public Health 93(9): 1546–1551.
Manaugh, K., and T. Kreider. 2013. What is mixed use? Presenting an interaction method for measuring land use mix. The Journal of Transport and Land Use 6(1): 63–72.
Matthews, J. W., and G. K. Turnbull. 2007. Neighborhood street layout and property value: The interaction of accessibility and land use mix. The Journal of Real Estate Finance and Economics 35(2): 111–141.
McCormack, G. R., A. Shiell, B. Giles-Corti, S. Begg, J. L. Veerman, E. Geelhoed, A. Amarasinghe, J. C. H. Emery. 2012. The association between sidewalk length and walking for different purposes in established neighborhoods. International Journal of Behavioral Nutrition and Physical Activity 9(1): 92.
Owen, N., E. Cerin, E. Leslie, L. DuToit, N. Coffee, L. D. Frank, A. E. Bauman, G. Hugo, B. E. Saelens, and J. F. Sallis. 2007. Neighborhood walkability and walking behavior of Australian adults. American Journal of Preventive Medicine 33(5): 387–395.
Pivo, G., and J. Fisher. 2009. Effects of walkability on property values and investment returns. Responsible Property Investing Center. Working Paper. Boston College and University of Arizona Benecki Center of Real Estate Studies, Indiana University.
Rodríguez, D. A., K. R. Evenson, A. V. Roux, and S. J. Brines. 2009. Land use, residential density, and walking: The multi-ethnic study of atherosclerosis. American Journal of Preventive Medicine 37(5): 397–404.
Saelens, B. E., J. F. Sallis, and L. D. Frank. 2003. Environmental correlates of walking and cycling: Findings from the transportation, urban design, and planning literatures. Annals Behavioral Medicine 25(2): 80–91.
Song, Y., and G. Knaap. 2004. Measuring the effects of mixed land use on housing values. Regional Science and Urban Economics 34(6): 663–680.
Song, Y., L. Merlin, and D. Rodriguez. 2013. Comparing measures of urban land use mix. Computer, Environment and Urban Systems 42: 1–13.
Tobler, W. 1970. A computer movie simulating urban growth in the Detroit region. Economic Geography 46(2): 234–240.
Washington, S. P., M. G. Karlaftis, and F. L. Mannering. 2010. Statistical and Econometric Methods for Transportation Data Analysis. Boca Raton, FL.: CRC Press.
Walk Score. 2014. Walk score methodology. http://www.walkscore.com/methodology.shtml.
How to Cite
Authors who publish with JTLU agree to the following terms: 1) Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under Creative Commons Attribution-Noncommercial License 4.0 that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal. 2) Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal. 3) Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.