The real estate market has long favored car-oriented suburban development and centralized downtowns in the urban core, but there is a new movement reshaping the landscape that will benefit both developers and tenants. Walkable neighborhoods are booming, and millennials and boomers alike find them appealing. The latest research shows that the concept of “walkability” is having a profound impact on property prices, rents and sales, as well as on how people choose where to live and work.
It is easy to see the trend in center-city Washington, or in other urban cores around the country, but many of these areas are also transforming the suburbs. A growing number of walkable urban developments are popping up in the suburbs, ranging from high-rise office buildings in Ballston and Clarendon, to mixed-use communities like Rosslyn, Reston Town Center and Crystal City in Virginia, or Bethesda, Rockville and Silver Spring in Maryland. None of these communities were on the real estate radar 20 years ago, but they now command 40 to 100 percent price premiums over single-use suburban product. See more https://www.sellmyhousefasthoustontx.com/we-buy-houses-rockwall-tx/
These “walkUPs” are characterized by a variety of real estate property types, including multifamily, office, retail and industrial space, along with civic resources such as libraries or museums, within a half-mile radius. They also feature public transportation and have access to a wide range of dining, shopping and services. Regionally, there are 43 such neighborhoods in the Washington area, spanning seven counties. Doug Rogers, a U Street-based fraud investigator who lives in Dupont Circle, said that when he was looking to buy his current home, the proximity to the Metro was a big selling point, as was the fact that he could walk to a supermarket and to restaurants.
Moreover, when these urban places are built and maintained well, they tend to have much more resilience in economic downturns than suburban and auto-oriented areas. When Covid-19 hit, for example, retail and office space in walkable neighborhoods remained robust, while malls and unwalkable offices went bust.
Real estate investors are aware of these trends, which is why they are reshaping their portfolios with properties in the most walkable locations. The challenge, however, is that many local governments and communities have yet to catch up, with outdated policies favoring large-lot zoning and drivable town planning. In addition, land is often too expensive to make walkable urban development feasible.
Chris Leinberger, co-founder and managing director of Places Platform LLC, has been sounding the alarm on this issue for years. He argues that the only way to solve the problem is to change zoning laws and regulations that are currently blocking urban growth, and to allow for rental of auxiliary housing units in existing commercial space. He says this will dramatically increase the development potential of suburban town centers and strip retail corridors, and drive down the price of real estate in these districts. It will also help to alleviate the affordability crisis that the country is facing.
