There is an undeniable trend towards greener methods of transportation. Notably for real estate professionals, walking is among the most popular. At first glance, it might be hard to connect the dots between real estate and walking. Things become clear, however, when you take into account a recently released report by Smart Growth America and the George Washington University School of Business. The report details how a city’s “walkability” and its real estate prices are correlated.
As it turns out, walkability is a significant driver of high real estate valuations. As millennials enter the workforce and begin to command significant salaries, markets are beginning to pay attention to their habits. The generation is largely interested in walking or biking to do most of their activities, such as commuting to work or going for groceries. Consider the following: urban, walkable housing is between 40% and 200% more expensive than comparable suburban, un-walkable housing. The trend isn’t exclusive to residential either, walkable commercial property is 74% more valuable on average than similar un-walkable properties. The next time you consider the value of a property, make sure walkability is part of the equation.