The Washington region is blessed with many walkable places. But with more and more people hoping to live and work in them, some are more affordable and accessible to a wide variety of people than others. A nifty analysis from GWU looks at which walkable areas in the region are the most affordable and equitable over a wide variety of factors.
The scatterplot above shows the combined economic and social equity score for 50 walkable urban places in our region, or WalkUPs, a phrase my research group coined when we first started measuring this in 2012. The chart below summarizes how we find and define WalkUPs.
In the plot, the economic index is a weighted average of rents for office, retail, and multifamily residential buildings (per square foot), compared to a region-wide average for the baseline and discounted for vacancy; the social equity index is a five-part index based on transit-accessible jobs (10%), housing supply (15%), percentage of income spent on housing for a household earning 80% of the area median income (40%), percentage of income spent on transportation for same (20%), and public space per capita (15%).
These places are the site of the most intense and rapid development and demographic pressures and changes in our region, and it often seems like these two metrics are in direct conflict in those circumstances. However, we’ve identified some special places in our region that are at a “sweet spot” for both investors and residents. Those places are in the upper right quadrant of the plot.
Places in the upper left quadrant have relatively higher rents than the region as a whole, but lower social equity scores. But it’s interesting to note that there are places, even in the geographic northwest of DC, that score high on both indices, such as Friendship Heights. In these places, while rents are high, lower transportation costs help keep them within reach for average renters (note: this analysis does not include for-sale housing).
The quadrant where walkability, lower rents across product types, and equity meet is in the lower-right hand corner. Silver Spring scored number one of established WalkUPs on equity, and it’s affordable too! Housing hunters, take note.
This plot is a snapshot of 2015. The really interesting question is where our region is trending. The future sustainability of many of these places, especially suburban TODs, and many “emerging” WalkUPs that we’ve identified, hinge on the future of transit in our region. As Metrorail struggles and the Purple Line remains tied up in court, where market demand for walkability will land is an open question. Local jurisdictions whose budgets are supported by property taxes should take note, however, that walkability and value remain inextricably intertwined. All the places on this plot are walkable, and command significant premiums over a region that is mostly…not…yet?
If you’d like to hear more about this analysis, I’ll be presenting these findings at an Urban Land Institute event this Wednesday, September 21. Or, stay tuned for a forthcoming report.