Neighborhood Features That Reduce Home Values
April 7th, 2016
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Some neighborhood features close to a home, for example power plants and cemeteries, can really undermine a home's value. Realtor.com® analyzed data and came up with a list of features that have the most effect on values.
To forecast, Realtor.com® evaluated home prices and appreciation rates in zip codes of the top 100 metro areas that had a certain "drag-me-down-feature" that was present.
The research team then determined the possible discount by comparing the median home price in that zip code with the "drag-me-down-feature" with the median price for all homes in that same county.
They came up with these features that had the greatest negative effect on home values:
- Bad School: -22.2% (homes near a bad school received 22.2% less than an average home in the same county)
- Strip Club: -14.7%
- High renter concentration: -13.8%
- Homesless shelter: -12.7%
- Cemetery: -12.3%
- Funeral home: -6.5%
- Power plant: -5.3%
- Shooting range: -3.7%
- Hospital: -3.2%
Main article: "The Neighborhood Features That Drag Down Your Home Value - Ranked," realtor.com® (03/28/16)
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Disclaimer : The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the Houston Association of REALTORS®