FABB Blog

Bicycle-friendly amenities are contributing to a surge in property values in communities across the globe, marshaled by developments in urban centers and suburban outposts that accommodate “active” transportation.

“Today, bike trails, bike lanes, bike-share systems, and other forms of active transportation infrastructure are helping spur a new generation of ‘trail-oriented development,’” states a recently released report by the Urban Land Institute (ULI) that profiles 10 such developments.

The report, “Active Transportation and Real Estate: The Next Frontier,” cites a considerable statistic: on a national scale, the values of homes in areas with “above-average” access to active transportation are higher than those of comparable properties by as much as $34,000.


Homes in proximity to the bike-able Indianapolis Cultural Trail, for instance, have seen an astronomical rise in value since the trail’s opening six years ago—148 percent, the report states. In Radnor Township, Pa., the Radnor Trail has raised the values of properties within a quarter-mile by an average approaching $70,000. Similar trends have also emerged in Atlanta and Dallas.

The draw to these trails, or networks, is primarily enhanced well-being, with the increased sense of safety—made possible by features like graded paths, protective posts and “bicycle boulevards” —especially appealing to bicycle commuters, who contend with motorists daily. The opportunity for outdoor physical activity has also markedly peaked interest.

Beyond those benefits, bicycle networks can lead to a reduction in air pollution and vehicle greenhouse gas emissions. The Department of Transportation claims half of all trips taken in the U.S. are less than three miles long—a 20-minute ride by bicycle, according to the report.

The areas with higher concentrations of potential bike commuters cluster around suburban “edge cities” containing commercial centers such as Reston, Tysons Corner, Herndon, Manassas, and Woodbridge. The identity of some of the “hot spots” may be counterintuitive, particularly Tysons Corner, which used to be a national symbol of car-friendly and congested development. But these areas are typical of what we found in our nationwide study, and “bikeability” now forms a major part of Tysons Corner’s long-term development plan.

Medium-density suburban neighborhoods located one to three miles away from thriving commercial developments offer surprisingly good opportunities for increasing bike ridership. Further down the I-267 Dulles Tollway is Reston Town Center, another car-friendly suburb that has begun planning for 13 bikeshare stations to sustain its economic growth and attract younger residents.

Photo: Minneapolis Economic Development Authority

“Biking is definitely part of our strategy to attract and retain businesses in order to compete in a mobile world,” says Minneapolis Mayor R.T. Rybak as we glide across the Mississippi river on a bike-and-pedestrian bridge—one of two that connect downtown to the University of Minnesota. “We want young talent to come here and stay. And good biking is one of the least expensive ways to send that message.”

“We moved from the suburbs to downtown Minneapolis to allow our employees to take advantage of the area’s many trails and to put the office in a more convenient location for commuting by pedal or foot,” explained Christine Fruechte, CEO of large advertising firm Colle + McVoy, in a newspaper op-ed. “Our employees are healthier, happier and more productive. We are attracting some of the best talents in the industry.”

David A. Wilson, who directs 1,600 employees at the Minneapolis office of the Accenture management consulting company, says good biking opportunities are important to the well-educated 25-35 year-olds he seeks to hire. “Five years ago, I don’t think business people were even thinking about bikes as a part of business. Today it’s definitely part of the discussion.” He notes that Accenture recently relocated their Boston and Washington, D.C. offices from suburbs to the city to offer employees better opportunities for biking, walking and transit.

The boom in biking is also creating opportunities in the real estate sector. Jair Lynch, founder and CEO of a DC real estate development and construction company, declares, “We don’t work in places that aren’t near bike lanes.” Even in the slow economy, $200 million in new apartments are currently under construction adjacent to the Midtown Greenway in Minneapolis, a bike “freeway” cutting through the south side of the city.

Another benefit businesses see for locating in bike-friendly locations is a break on health insurance costs. QBP, a bike parts distributor in the Minneapolis area employing 600, offered a series of incentives for employees to commute by bike and discovered an unexpected bonus—a 4.4 percent reduction in health care costs, totaling $170,000 a year.

Minneapolis bike lane

“Biking is definitely part of our strategy to attract and retain businesses in order to compete in a mobile world,” says Minneapolis Mayor R.T. Rybak as we pedal across the Mississippi River on a bike and pedestrian bridge. “We want young talent to come here and stay. And good biking is one of the least expensive ways to send that message.”

Bikes are improving the business climate beyond big cities. Austin, Texas, is ambitiously expanding its bike infrastructure; its first green lane opened last spring, one of 10 planned. CEO Tyson Tuttle relocated Silicon Labs to downtown Austin five years ago to be near the bike trail system. “Biking on the trails is something a lot of employees enjoy,” said Tuttle, who sometimes rides to work. “And when people think about joining the company it’s a big draw.”

In Memphis, Eric Matthews echoes those comments. He’s CEO of Launch Memphis, an initiative to nurture and attract new businesses to city. He says, “Biking correlates with entrepreneurs.”

Then I’d remind him of the economic benefits of cycling — not just for cyclists, but for the community at large. Lower health-care costs benefit all of us. Fewer cars reduces the need for expensive new roads and parking lots, and it means fewer deaths and injuries from vehicle-related accidents. And jobs? Bike projects create jobs, all right — more than 11 jobs per million dollars vs. 8 jobs per million for highways.

Plus, bikes and a safe bike-commuting environment help people get to work even if they don’t have a car. In Richmond, some 18 percent of households can’t afford a car, and 60 percent of households share a single car among several adults. Bikes can help them get and keep jobs. Right now, biking and walking make up 12 percent of all trips in the United States and cost about 2 percent of transportation dollars. Yep, there are plenty of strong economic arguments for bikes that should appeal to thoughtful Republicans. I’ve got plenty more where these came from.