A groundbreaking study published in Environmental and Resource Economics reveals that proximity to cycling paths significantly boosts property values, shedding light on an often-overlooked economic benefit of bike-friendly cities.
The research, conducted by David Hearne and Erez Yerushalmi, focused on Greater Manchester, UK, and analysed over 253,000 real estate transactions spanning nine years. Using advanced hedonic and spatial regression models, the study found a clear relationship between proximity to cycling networks and higher property prices. Specifically, properties located closer to bicycle paths exhibited an average value increase of 2.8% compared to homes 1 kilometre away. In central Manchester, the increase was even more pronounced, reaching up to 7.7%.
Cycling infrastructure is increasingly seen as a valuable amenity by homeowners and buyers. The study attributes this premium to several factors:
Convenience: Cycling paths provide easy access to workplaces, schools, and recreational areas without the stress of traffic.
Quality of life: Reduced noise pollution, fewer emissions, and opportunities for outdoor exercise foster healthier, more vibrant communities.
Network effects: Established cycling networks amplify their value, as more connected paths make biking a practical and appealing mode of transport.
Urban planners and environmental advocates have championed cycling infrastructure as a key solution to congestion, pollution. © Profimedia
While previous studies in the United States indicated modest property value increases of 0.6% to 1% due to nearby cycling infrastructure, the Greater Manchester findings are significantly higher. The researchers suggest this disparity stems from differences in urban density, existing transportation alternatives, and the more established cycling culture in European cities.
The study offers actionable insights for urban policymakers and real estate developers:
Investment justification: Local governments can leverage the study’s findings to advocate for increased funding for cycling infrastructure, demonstrating a measurable return on investment through higher property tax revenues.
Urban planning: Developers should prioritize properties near existing or planned cycling paths to meet the rising demand for accessible, sustainable living.
Community benefits: Enhanced cycling infrastructure not only raises property values but also contributes to public health, reduced congestion, and environmental sustainability.
Rather than viewing cycling infrastructure as a luxury or an afterthought, this study highlights its potential as a transformative force in urban development. By fostering healthier communities, reducing environmental impact, and driving economic gains through enhanced property values, cycling paths can be the backbone of future cities designed for both people and the planet.
