The Premium for Walkable Development Under Land Use Regulations

22 Pages Posted: 27 Apr 2018

See all articles by Emily Washington

Emily Washington

George Mason University - Mercatus Center

Eli Dourado

Independent

Date Written: February 13, 2018

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.

Keywords: Walkability, Walk Score, Housing Supply, House Prices, Zoning, Land Use Regulation

JEL Classification: R31, R38

Suggested Citation

Washington, Emily and Dourado, Eli, The Premium for Walkable Development Under Land Use Regulations (February 13, 2018). Available at SSRN: https://ssrn.com/abstract=3169535 or http://dx.doi.org/10.2139/ssrn.3169535

Emily Washington (Contact Author)

George Mason University - Mercatus Center ( email )

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

Eli Dourado

Independent

No Address Available

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