How Good Location Impacts Housing Costs

A real estate location significantly impacts housing cost. Thus, a location’s desirability can be influenced by a plethora of factors, including environmental factors, safety, transportation access, and amenities. 

Properties in prime areas are easily accessible to the local school, gas station and shopping centers. Additionally, public transportation close to a busy road is often more expensive than the ones in less accessible areas.

The value of a property is heavily affected by the reputation of the neighborhood in which it is situated. Thus, it is pertinent for real estate investors to understand the importance of location as it will help them make informed decisions when purchasing a property. 

If you’re a real estate investor looking for housing in Massachusetts, this article explores the importance of a good location in real estate investing. 

What Does Location Location Location Mean?

As a serial investor, you must have repeatedly come across the word “location, location, location.” But as a new home buyer, you might wonder, “What does location, location, location mean?

When buying a house, you don’t impulsively pick your preferred property based on how aesthetically appealing it appears to you. Besides the property, you also own the plot of land it’s built on. 

While you can remodel or renovate the house standing on the land, it is impossible to change the land where the property is located. By buying a property, you’ve invested in that specific location. 

Depending on your home’s location and neighborhood, it can be a bad or good investment. Hence, location tops the long list of things to consider when checking a property’s value. Location also affects supply and demand, as houses in great locations are often limited compared to the number of people moving there.

A real estate location is vital in determining its desirability and value. Since a good location can significantly increase a property’s value, a bad location can lower the potential resale value.

How Location Affects Property Values

While searching for housing in Massachusetts, you must have heard that location matters in real estate. Due to its effect on home values, most buyers measure a home’s desirability by location. 

A home’s location offers easy access to convenient spots like shopping and the airport. The closer you’re to these spots, the faster your property will appreciate over time. Since no one can create more land, location hugely affects a property’s value. 

If you’re considering buying a real estate property, it’s best to prioritize the location because, as an investor, you’re looking for rentability and appreciation. Houses in better locations are easy to rent out at higher amounts. Also, the property will appreciate greatly. 

In Massachusetts, the best location to buy a house is one with a future appreciation potential, such as Quincy and Boston. The best way to experience maximum appreciation is to catch the neighborhood while it’s still fast-growing.

Why Is Location Important When Buying a House

You might still be wondering why is location important when buying a house. Location is essential in real estate due to its significant value effect on the property, the satisfaction renters get from the home, and its occupants’ quality of life. 

The following are reasons location is everything in real estate:

• More Value

One way to increase your real estate investment’s desirability and value is to buy properties close to a transportation system. A property in a desirable neighborhood near transportation in an urban area facing traffic congestion problems will have more resale value. 

• Attractive to Millennials

Millennials are people born between 1981-1996 and make up over half of the home buyers. Experts predict that the number of millennial home buyers will increase in the near future. Thus, locations preferred by this home buyer demographic are often considered good. 

The average American moves every seven years. Hence, it’s best to ensure the home you buy is one you can easily sell when you’re ready to move. Most millennials look for locations with affordable housing, artistic and cultural happenings, a good school district, a safe neighborhood, convenient access to local amenities, and accessible work commutes.

• High Demand

One of the critical factors to checking good home locations is the proximity to local schools. Besides increasing desirability and value, homes close to a good local school district are usually in high demand, as young families with children will want to give their kids the best education. 

Close proximity to good schools affects real estate prices. Hence, properties are more expensive in areas with better school districts and higher school demands. They also appreciate more quickly than homes in areas with less school demand.

• Increased Desirability

Properties in an unsafe less-than-desirable neighborhood will affect the property’s resale value. Simply put, one of the first signs of a great location is a lower crime rate. Homeowners want areas where they’ll feel safe. 

Low crime rates significantly impact the overall property value, increasing appreciation. According to Neighborhood Scout, one in 96 persons in Massachusetts have a chance of becoming a victim of property crime, signifying a low crime rate compared to national statistics. 

• Fast Appreciation

The availability of amenities like entertainment options, restaurants, parks, and shopping centers are great indicators of an excellent location. Besides leading to higher property values and more desirability, buying a property in such a location ensures rapid appreciation.

Potential buyers love homes near amenities as they offer entertainment options and convenience within easy reach. While these homes are often more expensive, they appreciate more quickly than houses in less developed locations. Therefore, you’ll enjoy more profit when you decide to sell it.

• High Resale Value

The location of a home can affect its resale value significantly. Properties in prime locations with an excellent reputation for security and safety, good transportation infrastructure, and access to amenities often appreciate fast, leading to higher resale value. 

When you’re ready to sell your property, you’ll likely sell at a higher price once it’s in a desirable place. 

• Higher Quality of Life

A property’s location can significantly affect its occupants’ quality of life. Living in an excellent location can improve your satisfaction and overall well-being.

For instance, living close to a waterfront or park offers outdoor relaxation and recreation opportunities. Also, staying close to essential amenities like entertainment spots, shopping malls, and transportation makes life less stressful and more convenient.

Three Factors to Consider When Choosing an Excellent Location

An excellent location means many things to different people. However, some factors determine a home’s value and the location’s desirability. Knowing what you want will help you make the best decision.

When house hunting, pay attention to the amenities in the area. Buyers often want entertainment spots, dry cleaners, and convenient grocery stores. You must also consider proximity to transportation options like roads, trains, bus stops, public bike-share locations, subway stations, and airports. 

Proximity to amenities significantly increases a home’s value. So, the next time you ask a real estate agent to help you find a home in major cities, keep these top three factors in mind:

1. Centrality

An important factor to consider when searching for the perfect location is centrality. Where you decide to live will notably affect the amount you pay. As a finite commodity, lands in states like Massachusetts are highly developed and have higher prices than slowly-growing towns. 

Some old communities have uninhabited homes, with some areas falling into despair. Data from the United States Census Bureau shows urban sprawl happens due to population growth. 

When sprawling cities experience massive population exodus, the outlying areas often suffer severe declines in home value. Since location significantly impacts fundamental tenets of supply and demand, it’s best to prioritize a central location when searching for a home for sale.

2. Development

Besides looking out for present amenities in your preferred neighborhood, you must also consider future ones. There might be plans for civic infrastructure, public transportation, hospitals, and new schools. 

Also, commercial development improves property value. When shopping for a property, find out whether there will be new commercial or residential developments. 

A commercial property like a shopping mall can significantly affect a location’s desirability, so make inquiries before buying into your preferred community. 

3. Neighborhood

Another important factor for choosing an excellent location is a great neighborhood. While your preferred community depends on your personal choice, some factors like amenities, appearance, and accessibility might depend on the neighborhood association, such as Homeowner Association (HOA). 

Your neighborhood also dictates the lot location and size of your home. However, look for a neighborhood close to a major transit route with over one entry point when considering accessibility.

Work commutes are a huge part of people’s lives. Thus, a house with access to public transportation and roads is more desirable than those hidden and accessed by one route. 

Quality landscaping, shady trees, community spaces, and nearby parks are desirable elements when searching for a great location. Also, judge your preferred neighborhood based on the number of days listed homes stay on the market. If homes don’t remain in the local real estate market for long, you aren’t the only one who sees the place as desirable. 

A great neighborhood should also include essential amenities like restaurants, shops, and grocery stores. Most people love visiting convenient places. Besides the nearby amenities, check for local public schools whether you have kids or not. 

A reputable local public school district can boost a location’s value, raising the profit when you sell the house. If you’re a home seller, your buyers will prefer a neighborhood with strong public schools.

FAQs

How Will I Know If the Neighborhood Is Perfect for a Home Purchase?

An excellent neighborhood has indicators that attract buyers ranging from paved roads, public schools, transportation, well-kept yards and homes, lower crime rates, and convenience to amenities.

However, conduct your due diligence before starting the home purchase. 

How Important Is Location in Real Estate Investing?

The location of a property is a crucial factor while buying a home considering it can impact its value. Thus, buyers should evaluate their preferred location before deciding to invest. A good area attracts high-quality tenants, ensuring significant returns on investment (ROI).

How Does Proximity to Amenities Like Schools Affect Housing Costs?

Properties close to amenities like hospitals, shopping centers, and schools are likely to have higher prices than the ones in less accessible locations because people prefer living in places offering access to essential services and convenience.

How Does Access to Public Transportation Impact Housing Costs?

Houses near transportation infrastructure like airports, trains, and highways can increase a location’s desirability, leading to higher housing costs. Properties near these transportation hubs command higher prices in urban areas with a generally high cost of living.

Can a Neighborhood’s Reputation Affect Its Housing Cost?

Yes! A neighborhood’s reputation can affect housing costs. Areas with low local crime reports, community spirit, and cleanliness are often more desirable, commanding higher prices. 

Final Thoughts

Location is important in real estate, especially when looking for housing in Massachusetts. Many factors, including access to amenities, environmental factors, safety, and accessibility, influence a location’s desirability. 

Real estate investors and buyers need to carefully evaluate a property’s location before deciding whether to invest or buy. Understanding how location affects housing costs will help investors and buyers get value for their money. 

More so, location’s impact on housing costs showcases the benefits of investing in amenities and infrastructure to increase a neighborhood’s desirability while improving the residents’ overall quality of life. 

Ultimately, a good location improves the property’s value and enhances the satisfaction and well-being of its residents. 

If you’re a new home buyer in Massachusetts, you already understand the importance of buying a property in a great location in the Bay State. Thankfully, you can get your dream property in the national real estate market by working with our knowledgeable real estate agents at Ardor Homes Massachusetts. 

Contact us today to help you find homes in Boston, Quincy, and other fast-growing cities in MA at the best price, according to your personal preferences.

Steph Wilkinson

In her 25-year career, Steph Wilkinson has been involved in the acquisition, marketing and sales of over $3 Billion dollars of residential real estate. A number of years ago, Steph transitioned into Brokerage Leadership for National real estate brands and tech start-ups. She has served as a Business Strategist for real estate agents and brokerages alike and is also a real estate coach and trainer. In her new role with the Iconic Team, Steph will be responsible for the growth of the team and will be working with all of our agents to increase their productivity and bottom line.