It is common knowledge that people are more prone to buying houses that are in centralized areas. Families would want to be closer to schools, employees would like to be close to their jobs, and being near supermarkets can also boost the market value of a house more than you might think.
We recently learned some more interesting facts about up-and-coming areas and their correlation to increasing home values. Location is undoubtedly one of the most important factors in the real estate world. It’s something about a home you can’t really change, but the area of town your home is in plays a huge factor in its value.
This isn’t any ground-breaking news, but as the society modernizes, so do the market value of houses. We have done research regarding the modern factors that play a role in your location when it comes to buying or selling a house. Here are a few things we found out.
We decided to investigate the research as shown on Zillow and we have concluded that they have done their homework quite well. Zillow took a look at the hot areas in a few cities, and found that the rates of appreciation are actually faster in the up-and-coming areas of town, the “future hot spots.” These hotspots can be anything from a nightclub to a mall to a university. They are the spots that attract a larger crowd and where the majority of people frequently hang out. If your house is close to these spots, then you can consider yourself lucky. To find these spots, keep an eye out for Starbucks. They are usually built where there’s a lot of activity.
Starbucks itself has become a hotspot which is why people are more likely to pay market value for your house when you live near one. According to a study by Zillow, if you lived within a quarter mile of Starbucks, your home value would have been appreciated by 96% from 1997 to 2014. This is compared to a 65% appreciation rate if your home wasn’t located near a Starbucks. This is an interesting statistic, and proves that Starbucks does a great job at identifying up-and-coming areas, and subsequently building in those areas.
Another way location can influence the value of your home is by the identification of a road or street you live on. Certain types of roads have better market value than others, due to the elegant way it is presented. Your home address eventually becomes who you are and it is the thing that gives others a first impression about your life situation. If your home is on a Court, Lane, or Way, as opposed to a Street or Boulevard, your home could be worth 2-3% more.
We just thought this was some interesting information that we should share with you. Whether you’re thinking about selling now or in 10 years, it’s always good to pay attention to trends like this.