Properties with higher 'walk scores' are better investments: Michael Matusik

Michael MatusikDecember 7, 2020

Fast car driving - sleek and modern - public transit - photos waiting - blood and glass - three points of rain - carpet lining - seats reclining

Clever words on smooth tongue talking - shove it brother - just keep walking.

- lyrics to Just Keep Walking, INXS 1980

Walk Score measures the number of typical consumer destinations within walking distance of a dwelling, with scores ranging from 0 (car dependant) to 100 (most walkable).

Recent overseas studies indicate that properties with above-average levels of walkability command a premium over homes with average levels of walkability.

In the United States, for example, an additional one point increase in a Walk Score is associated with a potential $3,000 increase in property value.

Our recent study of Brisbane also found a very strong correlation between a suburb’s Walk Score and a property’s investment performance.

Housing markets attach a positive value to living within easy walking distance of public transport, shopping, services, schools and quality open space.

Furthermore, an investment property value premium for walkability seems to be higher in more populous urban areas and in those locations with extensive public transit access, suggesting that the value gains associated with walkability are greatest when people have real alternatives to living without needing to use their car for most commutes.

It should be stressed that Walk Score’s measure of walkability captures not just the benefits associated with walking, but with greater accessibility generally.  For example, places with higher Walk Scores tend to have more mixed uses & better transit services, and much of the value measured here may be attributable to those assets.

The average Walk Score for the greater Brisbane area is just 49 out of 100.

Our study across 24 Brisbane suburbs found that places with higher walkability achieved higher prices; grew faster in value; attracted higher rents (& rental returns); had fewer vacancies & less properties listed for resale.   Resale listings also sell faster in high Walk Score areas.

Everyone thinks their new development or property is better located than the next.  Tell them all to shove it brother, check out Walk Score and make up your own mind.

P.s. INXS’s debut self-titled album, for mine, was their best.  I am getting nostalgic in my old age and I fondly remember seeing INXS, Dragon (now I am showing my age) and Aussie Crawl on Cronulla Beach in the early 1980s. 30,000 people were rumoured to be there. It was INXS’s first big audience and Michael Hutchence sang with his back to the crowd. Hard to believe these days, hey!

Michael Matusik is the founder of Matusik Property Insights, which has helped over 550 new residential projects come to fruition.  Read Michael’s Blog or follow him on Facebook and Twitter or connect via LinkedIn.

Michael Matusik

Michael Matusik is the founder of Matusik Property Insights, which has helped over 550 new residential projects come to fruition.

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