How does walking and cycling travel-time affect where people choose to live and work? To answer this question, I analyse commuting data from three Australian cities. The intuition underlying my analysis is that commuting data reveals information on people’s preferences for home and work locations, and the perceived costs of travelling between the two. Using spatial general equilibrium sorting models, I find robust evidence that walking and cycling travel-time affects location choice. Depending on the city and specification, a one minute saving on a 15 minute journey is estimated to cause a 1-8 percent increase in commuting flows between directly affected locations. The magnitude of the effect decreases with commute length, and I find some evidence of a larger effect for low-income commuters.