Residential property values and neighborhood retail : a comparison of pedestrian and automobile oriented retail clusters

Abstract

This study tests the hypothesis that home buyers pay a premium to live within walking distance of pedestrian accessible retail. To answer this question two types of retail clusters are identified in the Boston metropolitan area-pedestrian oriented and automobile oriented--and comparisons are made between their effects on surrounding residential property values. Hedonic regression analysis reveals price gradients which vary depending on retail form, regional location and home type. In particular, walkable centers appear to be more appreciated in inner-suburban locations and among condominium buyers. Interestingly, automobile oriented retail clusters are found to not significantly affect the values of proximate single family homes.