I was reading this and thought I would share it… Americans will dig deeper in their pockets and shell out more cash to live near top-notch schools and in safer neighborhoods with access to retail and “artificial amenities,” according to a new study published in the Journal of Urban Economics.
In analyzing 2,000 neighborhoods across the country, researchers found that homebuyers are willing to potentially spend thousands of extra dollars on a home due to these area amenities.
A regional funding increase of $1,000 per student in schools, for example, is associated with a $570 annual increase in what people are willing to pay for a home in the neighborhood, though “this number is likely biased from well-funded areas being nicer or having more desirable residents,” researchers note.
However, unsafe neighborhoods will bring in much lower offers from buyers. A 10-point increase in the murder rate – from 10 to 20 deaths per 100,000 residents annually – is associated with an annual drop of $1,000 to $1,600 in what people are willing to pay, according to the study.
Buyers will also pay more incrementally depending on how many bars and restaurants there are in the neighborhood. Each establishment per 1,000 was found to be worth an annual $170 increase in what people say they’re willing to pay for a home. That number may also reflect a desire to live near a variety of stores and entertainment areas, researchers note.
So what does all that mean? It’s probably obvious… most everyone simply wants to live in a community where the “good things” that are available in our culture are nearby. Most of us want a safe place to enjoy life, be with family and have somewhat close access to entertainment and positive lifestyle. Well, to me that sounds a lot like Central Florida! I hope home buyers and sellers in all types of Central Florida communities – and I see so often exactly what was described above. People want to enjoy their lives… and they want to do that quite often right where they live. That’s why I love what I do!
If you’re looking for your dream home, or better yet… your dream neighborhood, call me, David Dorman! I’m here to help you do just that!