The Premium for Walkable Development Under Land Use Regulations

Abstract

This paper builds on the existing literature on the relationship between walkability and house prices. We demonstrate a positive relationship between home prices and walkability using zip code–level data in the first nationwide study of walkability. We find that a one-point increase in Walk Score commands a 0.14 percent price premium. In other words, a zip code with a Walk Score of 100 could be expected to command a 14 percent premium relative to an otherwise comparable zip code with a Walk Score of 0. Our findings indicate that land use regulations that prevent walkable development—such as zoning, parking requirements, and density restrictions—make consumers worse of by restricting choice and the supply of walkable neighborhoods that consumers are willing to pay a premium for.