Economic value of 10-min neighborhood: Evidence from Munich Metropolitan Area, Germany

The x-minute city/neighborhood concept has been introduced in numerous cities globally and is considered a new management paradigm to support low-carbon and sustainable non-motorized travel mode. This paper provides the first empirical evidence of the economic benefits of the 10-min neighborhood by investigating the impact of functional diversity, functional density, and street connectivity within a 10-min walking distance on rental prices. Based on approximately 74,000 rental transaction data points in the Munich Metropolitan Area, Bavaria, Germany, spanning from 2015 to 2022, we have identified significant price premiums associated with functional diversity. And the economic significance diminishes when distances extend beyond 10 min. Additionally, in regions characterized by relatively lower levels of accessibility and income, residents pay more for functional diversity in their rents. Our results offer intuitive insights for urban planning on the economic value of the x-minute city/neighborhood, which can also serve as a reference for effectively allocating resources. • Quantify the WTP for four dimensions of the x-min neighborhood: proximity, diversity, density, and connectivity. • The price premium primarily stems from the functional diversity of urban service amenities close to properties. • Beyond a 10-min walking distance, residents' willingness to pay for access to urban services notably diminishes. • WTP for functional diversity varies spatially, with greater impact in regions of lower accessibility and resident income.