Are Walkable Neighborhoods More Resilient to the Foreclosure Spillover Effects?

Abstract

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.