What Happened?
A recent study from the University of Arizona compared mortgage default rates and walk scores for multifamily housing in cities across the country. The study found low walk scores associated with high risk of mortgage default, and high walk scores tied to low risk of mortgage default.
The Goal
The findings of the study prove the value of walkable communities and developments, which many argued were expensive and not as in-demand as previously thought. Financing projects in walkable communities was typically more difficult for developers, but the associated low mortgage default rates indicate that may change.
The study found cities with walk scores at 80 or more out of 100 demonstrated a relative risk of mortgage default 60 percent lower than in locations with walk scores below 80. Looking at the other end of the spectrum, cities with walk scores below 8 reported a risk of mortgage default 121 percent higher.
In addition, more communities are demanding a higher walkability rating and want new developments to nurture these changes. Another study from the Urban Land Institute discovered demand and interest in new developments surrounding pedestrian and cyclist-friendly amenities were on the rise. When communities have more transportation choices, it is easier for residents to make healthy decisions and for vehicle traffic to be reduced. Thus, walkable housing projects are becoming a much lower-risk investment and generating a very low likelihood of mortgage default.
Las Vegas Walking
Las Vegas has announced new plans to make the city more walkable with the addition of sidewalks, paths and corridors to accommodate pedestrians and cyclists. The goal of the project is to implement networks of pathways to allow walkers to conduct daily activities within a 10 minute walking distance. This includes providing basic amenities throughout the city, rather than focusing on a few areas of concentration. Las Vegas would like residents and visitors to rely less on vehicle transportation to help reduce pollution and increase wellness.
Furthermore, the city’s corridor plan focuses on making the streetscape more accommodating for pedestrians. Las Vegas would like to improve the efficacy and aesthetic value of:
- Bus shelters
- Bus turnouts
- Street parking
- Sidewalks
- Landscaping
- Medians
- Crosswalks
- Building design standards
- Signage
Each community within Las Vegas has established its own walkability plan to make it easier to maneuver the neighborhoods on foot or bicycle. The neighborhoods are holding public hearings to introduce the strategies to residents and business owners, collect feedback and launch initiatives.
In addition, many private businesses are investing in pedestrian-friendly amenities, as the majority of tourists in Las Vegas spend time walking from place to place. Various casinos have invested in pedestrian-friendly walkways that keep visitor drop-offs away from the street for increased safety. Others are constructing more open-air shopping districts to take advantage of the city’s warm, dry climate and attract more foot traffic to stores.
Value of Walkability
Gov1 has noted many communities working to raise their low walkability scores after pushback from residents more interested in car-free mobility options.