Does Walkability Influence Housing Prices? Evidence from Miami

Posted: 19 Sep 2012

See all articles by Austin Boyle

Austin Boyle

Penn State; Florida State University - Department of Economics

Charles Barrilleaux

Florida State University - Department of Political Science

Daniel Scheller

New Mexico State University - Department of Government

Date Written: September 10, 2012

Abstract

Objective: We examine the effects of neighborhood walkability on house values. Recent research claims that walkability makes homes more valuable, ceteris paribus. We contend that some studies report a spurious effect of walkability because of differences between areas with high and low walkability.

Methods: We replicate the positive effect of walkability on prices for single family homes and condominiums in Miami, Florida, using a unique dataset of house values and characteristics. We employ a fixed effects regression model instead of a traditional ordinary least-squares (OLS) regression model to account for the unobserved heterogeneity of neighborhoods.

Results: We find that walkability’s impact on housing value becomes statistically insignificant at the margin after controlling for heteroskedasticity and neighborhood fixed effects.

Conclusions: The significant impact of the fixed effects suggests that something other than walkability is affecting prices and that better specified models are needed to discern the real price effects of walkability.

Keywords: Walkability, Housing Price

JEL Classification: R10, R21, R40

Suggested Citation

Boyle, Austin and Barrilleaux, Charles and Scheller, Daniel, Does Walkability Influence Housing Prices? Evidence from Miami (September 10, 2012). Available at SSRN: https://ssrn.com/abstract=2148673 or http://dx.doi.org/10.2139/ssrn.2148673

Austin Boyle (Contact Author)

Penn State ( email )

505 Kern Graduate Building
University Park, PA 16802-3306
United States

Florida State University - Department of Economics ( email )

Tallahassee, FL 30306-2180
United States

Charles Barrilleaux

Florida State University - Department of Political Science ( email )

Talahasse, FL 30306
United States

Daniel Scheller

New Mexico State University - Department of Government ( email )

United States

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