When buying or selling a home, location is one of the most important factors influencing a property’s value.
While the home itself plays a significant role, the surrounding neighbourhood can have just as much of an impact. A desirable neighbourhood can elevate property values and make your home more attractive to potential buyers.
Whether you’re looking to invest in a new property or enhance the value of your current home, knowing which neighbourhood features boost property values can help you make informed decisions.
Below, we explore some key factors to consider when evaluating or improving a neighbourhood’s appeal.
1. Proximity to Quality Schools
For families and potential buyers with children, proximity to quality schools is often at the top of their priority list. Homes located in neighbourhoods with highly-rated public or private schools tend to have higher property values because they appeal to families looking for the best education opportunities.
Why It Matters: Parents are often willing to pay a premium to live near top-tier schools. A good school district can attract buyers even if the home itself is less modern or requires renovations. Properties in these areas often hold their value better during market downturns.
How to Identify: Research school ratings in the area, or ask your real estate agent for information on local education options. Websites like GreatSchools.org or local school district websites can also provide insights into school performance.
2. Access to Public Transportation
Easy access to public transportation is a major draw, especially for urban buyers who rely on buses, trains, or subways for commuting. Homes that are close to reliable public transport tend to attract a larger pool of buyers and are often priced higher than those that are not as conveniently located.
Why It Matters: Commuters value convenience, and properties located near public transit hubs can command higher prices due to reduced travel time and transportation costs. This is particularly relevant in densely populated cities where parking is limited.
How to Identify: Look for properties near transit stops or stations. Check the local transit authority’s future development plans, as upcoming projects like new bus routes or train stations can increase property values in the surrounding areas.
3. Low Crime Rate
Safety is a major consideration for homebuyers, and neighbourhoods with low crime rates are typically more desirable. Buyers are willing to pay more for a home in an area where they feel secure and where they can raise their families without worry.
Why It Matters: Crime rates can have a significant impact on property values. Homes in safe neighbourhoods tend to appreciate faster than those in areas with higher crime rates. Moreover, buyers may be deterred from making offers if they perceive a neighbourhood as unsafe.
How to Identify: Crime statistics for any neighbourhood are usually available online through local police department websites or third-party services like LocalLogic. Your real estate agent can also provide insights based on local knowledge.
4. Amenities and Recreational Facilities
Proximity to amenities such as parks, gyms, restaurants, and shopping centers can significantly boost a property’s value. Homebuyers are often willing to pay more for the convenience and lifestyle benefits that come with having these amenities nearby.
Why It Matters: Access to green spaces, recreational facilities, and popular dining or entertainment options enhances the quality of life for residents. This makes the area more attractive to a wide range of buyers, including families, professionals, and retirees.
How to Identify: Look for homes near well-maintained parks, fitness centers, shopping plazas, and restaurants. Areas that are actively investing in improving their amenities, such as adding bike lanes or community centers, tend to see an uptick in property values.
5. Walkability
Walkability refers to how easy it is to access daily necessities like groceries, schools, parks, and entertainment on foot. Neighbourhoods with high walkability scores are in demand, as many buyers are looking to reduce their reliance on cars.
Why It Matters: Walkable neighbourhoods are often more desirable because they offer convenience, promote a healthy lifestyle, and foster a sense of community. Homes in walkable areas typically sell faster and at higher prices than those in car-dependent neighbourhoods.
How to Identify: Websites like WalkScore.com can provide a “walkability” score for any neighbourhood, ranking it based on proximity to daily necessities and ease of pedestrian access.
6. Future Development and Infrastructure Improvements
An area’s potential for growth can also have a significant impact on property values. Neighbourhoods with planned infrastructure improvements, such as new roads, bridges, or public facilities, are likely to see an increase in home values as these developments progress.
Why It Matters: Buyers are often interested in the long-term potential of a neighbourhood. If major developments or improvements are on the horizon, it can indicate future appreciation in property values. On the flip side, overdevelopment can sometimes lead to congestion or loss of the neighbourhood’s charm, so balance is key.
How to Identify: Research upcoming construction projects or city planning documents for insights into future developments. Your real estate agent can also provide valuable information on any planned changes in the area.
7. A Sense of Community
A strong sense of community can make a neighbourhood more appealing and increase property values. Buyers are often attracted to areas where neighbours know each other, where there are community events, and where residents actively work to improve the area.
Why It Matters: A neighbourhood that fosters connections between its residents is more likely to retain long-term homeowners, creating a stable housing market and a desirable living environment. This stability can drive property values up over time.
How to Identify: Look for evidence of active neighbourhood associations, local events, and community initiatives. Neighbourhoods with active social media groups or newsletters are also good indicators of a close-knit community.
8. Job Opportunities and Economic Stability
The presence of large employers, access to job opportunities, and the overall economic health of a neighbourhood can significantly impact property values. Areas with a thriving economy tend to attract more buyers and see higher appreciation rates.
Why It Matters: Proximity to major employers or business districts makes a neighbourhood more attractive to professionals. Stable employment opportunities within or near a community can lead to increased demand for housing, which drives up property values.
How to Identify: Research the local job market, large employers in the area, and the overall economic health of the community. An influx of new businesses or the expansion of existing companies is a positive sign for future property values.
Conclusion
Neighbourhood features play a crucial role in determining the value of a property. From proximity to good schools and public transportation to the presence of amenities and a low crime rate, these factors can significantly boost property values and make your home more attractive to buyers.
Whether you’re buying, selling, or investing, understanding the importance of these neighbourhood features can help you make smarter real estate decisions.
The Tar Team is here to assist you in finding the perfect neighbourhood that fits your lifestyle and investment goals.