Walk Score: The Significance of 8 and 80 for Mortgage Default Risk in Multifamily Properties

Gary Pivo

Journal of Sustainable Real Estate, 2014, vol. 6, issue 1, 187-210

Abstract: In this paper, I use logistic regression to study the relationship between walkability and mortgage default risk in multifamily housing in a pool of nearly 37,000 Fannie Mae loans. Walkability is measured with Walk Score, a widely available metric. Controls were introduced for loan terms, property characteristics, neighborhood conditions, and macroeconomics. Walkability reduced default risk but the relationship was nonlinear with thresholds. Default risk significantly increased where walkability was very low and significantly decreased where it was very high. The implication is that walkability and its possible benefits to health and the environment could be fostered by relaxing lending terms without adding default risk.

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/10835547.2014.12091859 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:rsrexx:v:6:y:2014:i:1:p:187-210

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rsre20

DOI: 10.1080/10835547.2014.12091859

Access Statistics for this article

Journal of Sustainable Real Estate is currently edited by Julia Freybote

More articles in Journal of Sustainable Real Estate from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().