Sorry if I didn't word the title well. I was curious what kinds of factors can have huge effects on the value of home values.
For example, does having a church closer to your dwelling increase the value? Or what about being near an airport (would the be higher or lower value?). Curious if you just had some random things that you know.
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Pretty sure there was a study that showed homes with a Starbucks nearby sold faster/at better prices. Not sure how they justified that correlation though, i just remember the headline.
I've heard this too from a land development/home builder company. They target certain areas within a certain radius of a Starbucks.
Correlation =/ causation.
Starbucks == lots of white rich people and yuppies. The only people who can spend $2-5 on coffee daily are mainly professionals.
Churches probably not. People will dislike the traffic and from what I understand, fewer people go to church each year.
Although I haven't run an analysis on locations before, I have performed a few multivariate regression models on physical features of houses in a certain neighborhood that yielded some interesting results.
A couple of the results I found included that each year the house sits there, it drops by about $2k in value due to age, and that an addition to the house, be it another bedroom or an extension the the living room, would raise the value by about $140 PSF. Which seems great until you realize that it costs about $150 PSF to construct the addition.
My observations of the southeast US have shown me homes near airports tend to be one of the roughest parts of town with low home values and income demographics. Wealthy people don't want to hear plane engines roaring over their homes numerous times each day. Residential home values are driven by supply and demand as well as interest rates. One major favor that either hurts or helps a home's value is the school district rating. Supply available in good school districts tends to be pretty determinative coupled with age and square footage.
School districts are a huge factor. In San Diego all the neighborhoods in the flight path of our airport and rather affluent.
San Diego is definitely an exception to that rule with the airport is in a pretty unique location. Although a big reason that the airport isn't moving to Miramar is that the more affluent neighborhoods don't want to be in the flight path.
School districts for sure, and even particular schools within those districts. I know neighborhoods where being on the right side of the street can result in a significant increase in home value because of the specific school in the same district that you can send kinds to from there.
For LAX, I think its anywhere under the flight path of the planes because Manhattan Beach, El Segundo, and Marina/Playa Del Rey are pretty pricey but within close proximity of the airport. Whereas, Hawthorne, Lawndale, Compton, Downey are all sort of meh and are all under the flight path of the runway.
Did you say anything important here?
Well ranked schools is huge in suburbs, my realtor said that was a big sell for a bunch of her recent sales in my area. Being near an airport would almost definitely lower the value too. Noise sucks.
Factors Affecting Home Values - Walkability - School Districts - Transportation - Crime - Pending Developments - Shadows of taller buildings - Distance to Commercial Districts or Downtown - Trees - Fences - Foreclosures or homes in disrepair - Fog - Airports - Proximity to the Projects - Industrial Areas - Parks - Views - Natural Hazards Disclosure Report - Street Noise - Supply & Demand
The airport here is two cities away so that's not a problem. The schools here have a lottery system so your kids may not get in the school that they want.
There are a lot of factors to take in account. You should be able to get a neighborhood value market report in whatever city your in. You could go to a realtor, Zillow, Redfin, and etc to get the information.
This is a pretty good list.
Convenience is a good rule of thumb. Like with other commodities/assets, if something is perceived to make life more enjoyable/convenient, then it's + to the price, if not, then it's a -. This applies to the above comments for schools, flight paths, walkability, etc.
It's also demographic dependent by area as some have implied.
For example, if you live in Boca Raton, FL, you will probably have a tougher time selling a condo with a detached garage and 2nd floor entry requiring stairs/no elevator (due to the average age of the population) than a ground floor unit, all else being equal.
Everyone has their own checklist though. Personally, if I was buying a condo/renting an apartment for myself I hate being on the ground floor because I seem to get unlucky and have always had some loud asshole above me, but I know I'm an outlier. I'd rather walk up stairs and have peace. If I was buying for an investment, unless there was a kickass view/some other amenity on the upper levels, I'd probably buy ground floor as in some markets you can get higher rents in those units.
Proximity to Whole Foods.
Some of the factors really matter to increase the value of one's property like construction, ventilation, conveyance from airport, public transportation must be at convenient distance.
WHOLE FOODS = GAINS
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if you add a ball pit.
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