People Pay A Premium to Live Where It's Walkable.

The California Department of Health publishes an interesting little brochure entitled The Economic Benefits of Walkable Communities. A few excerpts:

A 1999 study by the Urban Land Institute of four new pedestrian-friendly communities determined that homebuyers were willing to pay a $20,000 premium for homes in them compared to similar houses in surrounding areas.

According to a 1998 analysis by ERE Yarmouth and Real Estate Research Corporation, real estate values over the next 25 years will rise fastest in "smart communities" that incorporate traditional characteristics of successful cities including a mix of residential and commercial districts and a "pedestrian-friendly configuration."

Reducing traffic noise, traffic speeds, and vehicle-generated air pollution can increase property values. One study found that a 5 to 10 mph
reduction in traffic speeds increased adjacent residential property values by roughly 20%. Another study found that traffic restraints that reduced volumes on residential streets by several hundred cars per day increased home values by an average of 18%.