Driving: A Homeownership Hazard

Last week, Californian.com reported on the increasingly negative relationship between driving and homeownership. Citing studies by the Natural Resources Defense Council, CEOs for Cities, the National Housing Conference and the Surface Transportation Policy Project, the message is clear: auto-dependency reduces households' economic flexibility and, in at least 13 major U.S. markets, may stymie appreciation of housing values.

The Natural Resources Defense Council linked auto-dependency to foreclosure risk. Comparing mortgage data from Chicago, San Francisco and Jacksonville, the Natural Resources Defense Council found that in all three cities the probability of foreclosure was higher in neighborhoods with increased reliance upon cars.

The flip side of that coin, as the article points out, is that homes in more walkable neighborhoods have experienced increases in housing values. Citing our Walking the Walk report, in which CEOs for Cities analyzed 94,000 real estate transactions in 15 major U.S. markets, found that higher levels of walkability boosted housing values in 13 of them by $4000 to $34,000.

It is clear that walkability is more than just a pleasant amenity. It is part of a robust alternative transportation agenda that is critical to the future prosperity of Americans.

  

Wendy, May 18, 2010

In a Harris-Decima poll I commissioned at work (in Canada) of apartment dwellers, we found that the higher the income, the more value placed on proximity to amenities, shorter commute and access to transit. Presumably, home owners / buyers would feel similarly.

Link: allaboutcities.ca

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