If you’re currently house hunting, researching different markets, or are just interested in keeping up with real estate market trends, understanding how external factors affect the market is important. While the obvious mantra of location, location, location may be the first factor that comes to mind, other factors such as religion and the local coffee shop can positively or negatively affect your home’s value. Here are a few outside factors affecting real estate today:
Starbucks: When people refer to the location, location, location mantra they generally think of it as meaning living in proximity to restaurants, retail, public transportation, schools, etc. While all of those are important and differ in importance based on a homebuyers needs, one unusual factor apparently affecting the housing markets today is whether or not a Starbucks location is outside your door. According to Spencer Rascoff, CEO of the real estate site “Zillow”, Starbucks and it’s own real estate analytics team of 20 or so experts know where all the hot neighborhoods are. According to an article written by the Zillow CEO called “Confirmed: Starbucks knows the next hot neighborhood before everyone else does”, being located near Starbucks franchise can increase your home value by 96%.
Neighborhoods: Demographics, walkability, and family lifestyle are all neighborhood factors that affect the housing market. While the search for the perfect neighborhood differs based on homebuyer needs, doing a little research can alter perspectives. Does the neighborhood you’re seeking have higher crime rate statistics, or show homes with environmentally friendly features? Does your neighborhood have more single family homes or town homes? All of these neighborhood factors and more are what contributes to “what’s hot” in the real estate market today.
Religion & Politics: Some factors that can be overlooked as to how they affect the real estate market are religion & politics. While religious views & political parties are not everyone’s favorite subjects to talk about, they are affecting homebuyer’s decisions on where they want to live today. As they say, birds of a feather flock together and it’s not surprising to find that home buyers seek to live in areas surrounded with like-minded people who share their same values.
Environmental Factors: Environmental factors such as local climate can play a big part in home buyer’s decisions and affect the location of “top real estate markets”. Climate change, a concern for many today, can affect a home’s value negatively and according to realestate.com, homes in coastal or low lying areas will be especially affected. Landscape type and weather concerns such as different types of natural disasters that are likely to occur in the area also are a factor.