Economic benefits of 20-minute neighbourhoods

The evidence on place quality and economic outcomes is compelling. Better neighbourhoods mean better business. There are wide-ranging economic benefits associated with higher density neighbourhoods and the associated improvements in walkability that come from more effective residential density, land-use mix (access and diversity), street connectivity and safety. Creating places where Metropolitan Melbourne's growing population can live, in a safe, attractive and affordable local area with access to most of what they need for everyday life within a 20-minute walk, cycle or public transport trip is a State government priority. Five performance indicators of enhanced prosperity and growth associated with higher density walkable neighbourhoods were identified from the literature: local income and employment; property values and rental income; retail trade; agglomeration economies and; public expenditure savings. Despite the critical importance of making the connection between quality places and economic health, a review of current practices in Australia found no wellestablished, objective methodologies for evaluating the economic impact of multifunction urban design. The tendency to favour accounting metrics associated with more easily quantifiable benefits means that current investment appraisal methods may not help support the type of development and quality of life that people would like to see in their neighbourhoods. Shifting the traditional geographic focus of valuing economic benefits from the metropolitan area to the neighbourhood level is challenging. Rather than relying on a single method, the literature suggests that it is important to use 'holistic' methods to both quantitatively and qualitatively assess place quality in order to capture the complexity of the qualities of the built environment and the multiplicity of benefits and value that its improvement can generate. There are jurisdictions around the world that have developed these approaches to valuing