The difference in prices goes as high as 13.4% in Boston
Homebuyers in the largest US metros can see substantial savings in home values just by adding 15 minutes to their daily commute, according to an analysis by Zillow in conjunction with HERE Technologies.
If a homebuyer picked a hoe 15 minutes away from the urban core, the biggest home value savings were found in Boston and Seattle. The typical Boston home becomes 13.4% less expensive, or by about $57,260, when the property is 15 minutes from the downtown core. Homebuyers will find homes 11.3% less expensive 15 minutes from Seattle’s core, representing savings of about $54,599.
Washington D.C. and Chicago follow in terms of home value savings by moving 15 minutes further from the city's core. Washington D.C. homes became cheaper by 9.4%, or $37,709 in homeowner savings, and home values in Chicago dropped 8.2%, representing $18,864 in homeowner savings.
"There has been an urban revival in many US cities over the past two decades driven by evolving preferences among young adults and a long-term shift in the American economy toward service jobs," Zillow Senior Economist Aaron Terrazas said. "But, this does come with a cost -- in many cities, there's a growing tradeoff between a short commute and an affordable home."
Zillow found that there are certain locations where home values actually increase the farther you move from the city’s downtown core. The analysis revealed that there is still a premium on suburban living in San Antonio, Las Vegas, and Sacramento. A homebuyer would pay $27,509 more, or 14.2%, for a typical home in San Antonio if it were 15 minutes farther from the city's core.
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