The impact of location on home values: what you need to know

Jun 29, 2023

The Impact of Location on Home Values: What You Need to Know

When it comes to buying a home, one of the most important factors to consider is location. The location of a home can have a huge impact on its value, both now and in the future. In this post, we'll take a closer look at the impact of location on home values and what you need to know before making a purchase.

Location, Location, Location

It's a well-known saying in the real estate industry that the three most important factors in determining a home's value are location, location, and location. This is because a home's location can have a huge impact on its desirability and, therefore, its value.

For example, a home located in a desirable neighborhood with good schools, low crime rates, and easy access to amenities like shopping and entertainment will typically be worth more than a similar home located in a less desirable area.

home location

Regional Differences

The impact of location on home values can vary widely depending on the region. For example, homes located in urban areas tend to be more expensive than homes in rural areas. However, there are exceptions to this. In some regions, rural homes can be just as expensive as urban homes due to factors like proximity to the water or other natural attractions.

Similarly, homes located in coastal areas tend to be more expensive than homes located inland. This is because coastal areas are often seen as more desirable due to their proximity to the ocean and other natural attractions.

Neighborhood Factors

Within a given region, there are a number of neighborhood factors that can impact home values. These can include:

  • Quality of schools
  • Crime rates
  • Proximity to amenities like shopping and entertainment
  • Proximity to public transportation

Homes located in neighborhoods with good schools, low crime rates, and easy access to amenities tend to be more valuable than homes in neighborhoods without these features.

neighborhood factors

Future Development

Another factor to consider when evaluating the impact of location on home values is future development. For example, if a new shopping mall or entertainment complex is planned for a neighborhood, homes in that area may become more valuable as a result.

On the other hand, if a new highway or industrial park is planned for a neighborhood, homes in that area may become less valuable due to increased noise and traffic.

future development

Conclusion

When it comes to buying a home, location is one of the most important factors to consider. The location of a home can have a huge impact on its value, both now and in the future. By taking into account regional differences, neighborhood factors, and future development, you can make an informed decision when purchasing a home and ensure that you're getting the best value for your money.