Culture and Walkability: Ethnicity, Neighborhood Walkability, and House Price

This paper examines possible clientele effects underlying the value of walkability in the housing market. Sales transaction data during 2010-2019 in the Atlanta metro area show that houses in more walkable neighborhoods sell at a discount. At the same time, however, we find previously overlooked clientele effects. Focusing on the relationship between buyer ethnic origin and walkability value using a simultaneous equations approach to sort out separate effects on both prices and liquidity, it is clear that more than just walkability matters, as the value ethnic buyers place on walkability also depends on the neighborhood ethnic mix. When compared with non-ethnic buyers, Hispanic buyers discount walkability in both price and liquidity while Indian subcontinent buyer clientele effects appear in terms of liquidity more so than price. The price segments analysis shows the strong clientele effects observed in the lower priced neighborhoods diminish in the medium and higher price neighborhoods.