Walkable urban areas seeing boost

Living in urban areas with more walkability is taking the lead over living in the suburbs.

According to a report by the Center for Real Estate and Urban Analysis at George Washington University School of Business and LOCUS: Responsible Real Estate Developers and Investors, between 2010 and 2015, walkable urban market share growth in office and multi-family rental increased in all 30 of the largest metros. For 90 percent of these metros, their market share growth is double what it was in 2010. In the meantime, drivable suburban areas lost market share between 2010 and 2015.

According to the report, urban areas charge much higher rents over the suburbs, including 90 percent more for office space, 71 percent for retail and 66 percent for multifamily rentals. When combined, these three have a 74 percent premium over their suburban counterparts.

Walkable urban areas are defined as having multiple transportation opportunities, with high density and more mixed-use real estate in this study. The 30 metro areas analyzed by the report are the largest in the country and account for 46 percent of the total population, or 145 million people. Both Pittsburgh and Philadelphia were part of this grouping.

However, the increasing interest in urban areas does have an impact. The metros with the highest walkability have the highest costs of housing. Homes with moderate income spend 41 percent of their household income on housing, while the national average is only 25 percent. Additionally, transportation is costlier, with households earning moderate incomes spending 25.2 of their income on transportation, compared to the national average of 14 percent.

The study also found a positive correlation between a metro’s walkability and a higher education of its’ workforce.