Walk Score and Multifamily Default: The Significance of 8 and 80

Introduction This paper examines the relationship between Walk Score, a widely available indicator of walkability, and mortgage default risk in multifamily rental housing. It shows that very high and very low Walk Scores significantly affect default risk. Where Walk Score is 80 or more (out of 100) the relative risk of default is 60% lower than where Walk Score is less than 80. Where Walk Score is 8 or less, default risk is 121% higher. This was found while controlling for building age and condition, market setting, loan terms, and other factors that impact risk. A Walk Score above 80 indicates a neighborhood is highly walkable, while a score below 8 indicates it is highly auto dependent.