Walkability, Safety, and Housing Values in Shrinking Cities: Spatial Hedonic Study in Buffalo, Pittsburgh, and Detroit

The growing market demand for pedestrian and transit-oriented communities can be capitalized into higher housing values and can generate much-needed revenue for shrinking cities. Few studies, however, have examined sufficiently walkability and its economic outcomes, especially for shrinking cities. Using geographically weighted regression (GWR) models, this study examines the impact of neighborhood walkability, measured by Walk Score and an accessibility-walkability index constructed for shrinking cities on property values of single-family and duplex homes in three rust belt shrinking cities - Buffalo (New York), Pittsburgh, and Detroit. The results suggest that, controlling for spatial autocorrelation effects, GWR models perform more robustly than the traditional ordinary least-squares models. The findings showed that the impact of walkability on single and two-family housing sales in these three cities is significant. Our findings highlight the economic premium of safe and pedestrian-oriented communities in the housing market of shrinking cities and provide validated and empirical evidence for policy implications and approaches that help promote more walkable communities for the redevelopment of shrinking cities.