It is not just the structure that affects the price of a home; the neighborhood has a big influence on property prices too. In fact, in some cases, the neighborhood can affect the price of a home even more than the structure. Below are some of the neighborhood factors that can influence the price of a single-family home.
Most parents acknowledge that a good education is one of the best gifts they can give to their children. Since good schools are some of the drivers of a good education, neighborhoods with good schools tend to attract many buyers. The large pools of buyers end up driving property prices. Even homeowners in good school districts know that they can charge premiums prices for their properties and they will still get buyers.
Good Employment Opportunities
There are two main reasons why excellent employment opportunities can increase property prices. First, good employment opportunities mean that homebuyers and their families are likely to find work. Secondly, the high employment opportunities mean that the local economy is strong, and the benefits of a good economy are likely to permeate all the facets of the neighborhood. For example, low crime rates and good infrastructure are common in areas with good economies.
Various forms of infrastructure can also attract people to an area and drive property prices up. Examples include a good road network, public transport network, hospitals, shopping centers, and even recreational facilities. Just as is the case with good schools, homeowners in neighborhoods with good infrastructure also know they can get away with premium prices for their homes.
Local zoning laws determine many aspects of constructions and uses of properties within a jurisdiction. For example, zoning laws determine the sizes of homes a neighborhood can have and the nature of the activities the properties can house. A change in local zoning laws can make the properties more attractive to potential buyers and increase property prices.
Safety and Security
Lastly, most homebuyers want to keep their families safe, and one way of doing this is to raise their families in safe neighborhoods. This includes personal safety, health, safety, and property safety. A polluted neighborhood that is not good for your health is likely to have cheaper properties than a clean neighborhood where you don't have to worry about exposure to dangerous substances. A neighborhood where you are likely to get mugged at dusk may also command lower prices than a neighborhood where you can walk at any odd hour without fear of attacks.