Since 2007, many studies have explored the price spillover effect of foreclosures. However, none has examined the potential moderating effects of built-environment characteristics such as walkability. By using the interaction term between neighborhood foreclosure and walkability, this study found that property values in walkable neighborhoods were less subject to foreclosure spillover, but this was only significant for middle/high-income neighborhoods. Walkable neighborhoods were shown to offer more advantages in maintaining neighborhood stability during the recovery of 2013 than in the market crash of 2010. This study supports development strategies and policies that include walkability to achieve neighborhood stability and livability.
AkaEbenezer. 2012. “Foreclosure Disparities in Metropolitan Atlanta Counties Housing Market, 2000-2010: Implications for Policies and Planning.” International Journal of Interdisciplinary Social Sciences6 (6): 89–126.
2.
AnselinLucLozano-GraciaNancy. 2008. “Errors in Variables and Spatial Effects in Hedonic House Price Models of Ambient Air Quality.” Empirical Economics34 (1): 5–34.
3.
AnselinLucReySergio J.2014. Modern Spatial Econometrics in Practice: A Guide to GeoDa, GeoDaSpace and PySAL: Chicago, IL: GeoDa Press LLC.
4.
ApgarWilliam C.DudaMarkGoreyRochelle Nawrocki. 2005. The Municipal Cost of Foreclosures: A Chicago Case Study. Minneapolis, MN: Homeownership Preservation Foundation.
CallaghanEdith G.ColtonJohn. 2008. “Building Sustainable & Resilient Communities: A Balancing of Community Capital.” Environment, Development and Sustainability10 (6): 931–42.
7.
CarrLucas J.DunsigerShira I.MarcusBess H.2010. “Walk Score™ As a Global Estimate of Neighborhood Walkability.” American Journal of Preventive Medicine39 (5): 460–63.
8.
CheungRonCunninghamChrisMeltzerRachel. 2014. “Do Homeowners Associations Mitigate or Aggravate Negative Spillovers from Neighboring Homeowner Distress?” Journal of Housing Economics24:75–88.
DaneshvaryNasserClauretieTerrence M.2012. “Toxic Neighbours: Foreclosures and Short-Sales Spillover Effects from the Current Housing-Market Crash.” Economic Inquiry50 (1): 217–31.
11.
DaneshvaryNasserClauretieTerrence M.KaderAhmad. 2011. “Short-Term Own-Price and Spillover Effects of Distressed Residential Properties: The Case of a Housing Crash.” Journal of Real Estate Research33 (2): 179–207.
12.
DannenbergAndrew L.FrumkinHowardJacksonRichard. 2011. Making Healthy Places: Designing and Building for Health, Well-Being, and Sustainability. Washington, DC: Island Press.
13.
DiaoMiFerreiraJosephJr.2010. “Residential Property Values and the Built Environment.” Transportation Research Record: Journal of the Transportation Research Board2174 (1): 138–47.
14.
DuncanDustin T.AldstadtJaredWhalenJohnMellySteven J.GortmakerSteven L.2011. “Validation of Walk Score® for Estimating Neighborhood Walkability: An Analysis of Four US Metropolitan Areas.” International Journal of Environmental Research and Public Health (11):4260–79.
15.
EppliMark J.TuCharles C.1999. Valuing the New Urbanism: The Impact of the New Urbanism on Prices of Single-Family Homes. Washington, DC: Urban Land Institute.
16.
EwingReidCerveroRobert. 2010. “Travel and the Built Environment.” Journal of the American Planning Association76 (3): 265–94.
17.
FarrDouglas. 2008. Sustainable Urbanism: Urban Design with Nature, A Wiley Book on Sustainable Design. Hoboken, NJ: Wiley.
18.
FrankLawrence D.SallisJames F.SaelensBrian E.LearyLaurenCainKelliConwayTerry L.HessPaul M.2010. “The Development of a Walkability Index: Application to the Neighborhood Quality of Life Study.” British Journal of Sports Medicine44 (13): 924–33.
19.
GerardiKristopherRosenblattEricWillenPaul S.YaoVincent. 2015. “Foreclosure Externalities: New Evidence.” Journal of Urban Economics87:42–56.
20.
GibbonsSteve. 2004. “The Costs of Urban Property Crime.” Economic Journal114 (499): F441–63.
21.
GilderbloomJohn I.RiggsWilliam W.MearesWesley L.2015. “Does Walkability Matter? An Examination of Walkability’s Impact on Housing Values, Foreclosures and Crime.” Cities42 (Part A): 13–24.
22.
HardingJohn P.RosenblattEricYaoVincent W.2009. “The Contagion Effect of Foreclosed Properties.” Journal of Urban Economics66 (3): 164–78.
23.
HartleyDaniel. 2014. “The Effect of Foreclosures on Nearby Housing Prices: Supply or Dis-amenity?”Regional Science and Urban Economics49:108.
24.
IhlanfeldtKeithMayockTom. 2014. “The Impact of REO Sales on Neighborhoods and Their Residents.” Journal of Real Estate Finance and Economics1–43.
25.
ImmergluckDan. 2009. “The Foreclosure Crisis, Foreclosed Properties, and Federal Policy: Some Implications for Housing and Community Development Planning.” American Planning Association. Journal of the American Planning Association75 (4): 406–23.
26.
ImmergluckDanSmithGeoff. 2006. “The External Costs of Foreclosure: The Impact of Single-Family Mortgage Foreclosures on Property Values.” Housing Policy Debate17 (1).
27.
JacobsJane. 1961. The Death and Life of Great American Cities. New York: Random House.
28.
KelejianHarry H.PruchaIngmar R.2010. “Specification and Estimation of Spatial Autoregressive Models with Autoregressive and Heteroskedastic Disturbances.” Journal of Econometrics157 (1): 53.
29.
KosterHans R. A.RouwendalJan. 2012. “The Impact of Mixed Land Use on Residential Property Values.” Journal of Regional Science52 (5): 733–61.
30.
KupkeValerieRossiniPeterMcGrealStanley. 2012. “Measuring the Impact of Higher Density Housing Development.” Property Management30 (3): 274–91.
31.
LeeChanamMoudonAnne Vernez. 2004. “Physical Activity and Environment Research in the Health Field: Implications for Urban and Transportation Planning Practice and Research.” Journal of Planning Literature19 (2): 147–81.
32.
LeonardTammyMurdochJames C.2009. “The Neighborhood Effects of Foreclosure.” Journal of Geographical Systems11 (4): 317–32.
33.
LeydenKevin M.2003. “Social Capital and the Built Environment: The Importance of Walkable Neighborhoods.” American Journal of Public Health93 (9): 1546–51.
34.
LiWeiJohKennethLeeChanamKimJun-HyunParkHanWooAyoung. 2014. “From Car-Dependent Neighborhoods to Walkers’ Paradise: Estimating Walkability Premiums in the Condominium Housing Market.” Transportation Research Record2453: 162–70.
35.
LiWeiJohKennethLeeChanamKimJun-HyunParkHanWooAyoung. 2015. “Assessing Benefits of Neighborhood Walkability to Single-Family Property Values: A Spatial Hedonic Study in Austin, Texas.” Journal of Planning Education and Research35 (4): 471.
36.
LinZhenguoRosenblattEricYaoVincent W.2009. “Spillover Effects of Foreclosures on Neighborhood Property Values.” Journal of Real Estate Finance and Economics38 (4): 387–407.
37.
MalpezziStephen. 2003. “Hedonic Pricing Models: A Selective and Applied Review.” Section in Housing Economics and Public Policy: Essays in Honor of Duncan Maclennan, edited by O’SullivanTonyGibbKenneth, 67–89. New York: Wiley.
38.
ManaughKevinEl-GeneidyAhmed. 2011. “Validating Walkability Indices: How Do Different Households Respond to the Walkability of Their Neighborhood?” Transportation Research Part D16:309–15.
39.
MatthewsJohn W.TurnbullGeoffrey K.2007. “Neighborhood Street Layout and Property Value: The Interaction of Accessibility and Land Use Mix.” Journal of Real Estate Finance and Economics35 (2): 111–41.
40.
MoudonAnne VernezLeeChanamCheadleAlien O.GarvinChezaJohnsonDonnaSchmidThomas L.WeathersRobert D.LinLin. 2006. “Operational Definitions of Walkable Neighborhood: Theoretical and Empirical Insights.” Journal of Physical Activity & Health3:S99.
41.
PivoGary. 2013. “The Effect of Sustainability Features on Mortgage Default Prediction and Risk in Multifamily Rental Housing.” Journal of Sustainable Real Estate5 (1): 149–70.
42.
PivoGary. 2014. “Walk Score: The Significance of 8 and 80 for Mortgage Default Risk in Multifamily Properties.” Journal of Sustainable Real Estate6 (2): 187–210.
43.
RaccaDavid P.DhanjuAmardeep. 2006. “Property Value/Desirability Effects of Bike Paths Adjacent to Residential Areas.” Center for Applied Demography & Survey Research.
44.
RauterkusStephanie Y.ThrallGrant I.HangenEric. 2010. “Location Efficiency and Mortgage Default.” Journal of Sustainable Real Estate2 (1): 117–41.
45.
RealtyTrac. 2011. “2010 Year-End U.S. Metro Foreclosure Report.”
46.
RogersShannon H.HalsteadJohn M.GardnerKevin H.CarlsonCynthia H.2011. “Examining Walkability and Social Capital as Indicators of Quality of Life at the Municipal and Neighborhood Scales.” Applied Research in Quality of Life6 (2): 201–13.
47.
RogersWilliam H.WinterWilliam. 2009. “The Impact of Foreclosures on Neighboring Housing Sales.” The Journal of Real Estate Research31 (4): 455–79.
48.
RosenSherwin. 1974. “Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition.” Journal of Political Economy82 (1): 34.
49.
RosenfeldRichardFornangoRobert. 2007. “The Impact of Economic Conditions on Robbery and Property Crime: The Role of Consumer Sentiment.” Criminology45 (4): 735–69.
50.
SaelensBrian E.HandySusan L.2008. “Built Environment Correlates of Walking: A Review.” Medicine and Science in Sports and Exercise40 (7 Suppl): S550–66.
51.
SallisJames F.SlymenDonald J.ConwayTerry L.FrankLawrence D.SaelensBrian E.CainKelliChapmanJames E.2011. “Income Disparities in Perceived Neighborhood Built and Social Environment Attributes.” Health & Place17 (6): 1274–83.
52.
SallisJames F.SpoonChadCavillNickEngelbergJessa K.GebelKlausParkerMikeThorntonChristina M.LouDebbieWilsonAmanda L.CutterCarmen L.DingDing. 2015. “Co-benefits of Designing Communities for Active Living: An Exploration of Literature.” International Journal of Behavioral Nutrition & Physical Activity12:1–10.
53.
SchuetzJennyBeenVickiEllenIngrid Gould. 2008. “Neighborhood Effects of Concentrated Mortgage Foreclosures.” Journal of Housing Economics17 (4): 306–19.
54.
SeoKihwanGolubAaronKubyMichael. 2014. “Combined Impacts of Highways and Light Rail Transit on Residential Property Values: A Spatial Hedonic Price Model for Phoenix, Arizona.” Journal of Transport Geography41:53–62.
55.
SkoganWesley G.1990. Disorder and Decline: Crime and the Spiral of Decay in American Neighborhoods. New York: Free Press.
56.
SugiyamaTakemiNeuhausMaikeColeRachelGiles-CortiBillieOwenNeville. 2012. “Destination and Route Attributes Associated with Adults’ Walking: A Review.” Medicine & Science in Sports & Exercise44 (7): 1275–86.
57.
TitaGeorge E.PetrasTricia L.GreenbaumRobert T.2006. “Crime and Residential Choice: A Neighborhood Level Analysis of the Impact of Crime on Housing Prices.” Journal of Quantitative Criminology22 (4): 299.
WhitakerStephanFitzpatrickThomas J.IV. 2013. “Deconstructing Distressed-Property Spillovers: The Effects of Vacant, Tax-Delinquent, and Foreclosed Properties in Housing Submarkets.” Journal of Housing Economics22 (2): 79–91.
60.
ZhuXuemeiLeeChanam. 2008. “Walkability and Safety around Elementary Schools: Economic and Ethnic Disparities.” American Journal of Preventive Medicine34 (4): 282–90.
