Zillow: Living Outside Urban Centers Is Usually Cheaper – NMP Skip to main content

Zillow: Living Outside Urban Centers Is Usually Cheaper

Phil Hall
Jul 24, 2018
While many people are excited over the idea of living in an urban downtown area, homeowners could actually save significant amounts of money if they go property hunting just outside of a city’s center

Homeowners could save significantly by buying just outside of a city’s center.

While many people are excited over the idea of living in an urban downtown area, homeowners could actually save significant amounts of money if they go property hunting just outside of a city’s center.
 
According to a new data analysis from Zillow, residents in pricey metro areas such as Boston, Seattle and Washington, D.C., can save the most money by moving 15 minutes away from the urban core of their respective cities. In the Boston metro, for example, a typical home becomes 13.4 percent less expensive—roughly $57,260 in savings—if it is based five minutes from the downtown core. In Seattle, a typical home is about 11.3 percent less expensive, or about $54,599, when it's shifted 15 minutes out.
 
However, there are exceptions to this idea. In San Antonio, the typical home would be worth 14.2 percent more—or $27,509—if it were 15 minutes farther from the city's core. And in San longer commute times are associated with a 5.5 percent increase in the median home value.
 
"There has been an urban revival in many U.S. 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," said Zillow Senior Economist Aaron Terrazas. "But, this does come with a cost. In many cities, there's a growing tradeoff between a short commute and an affordable home. The regular commute to-and-from work looms large over the typical American worker's life. Over a 30-year career, reducing your one-way commute by just 15 minutes frees up five months of one's life for more rewarding pursuits. For some home shoppers, it may be worth paying more to spend less time sitting in traffic, but for others, deteriorating mortgage affordability and lifestyle needs and wants make longer commutes a reality."
Published
Jul 24, 2018
Online Brokerage REX Pursues Litigation Against Zillow & NAR

The legal battle between REX Home Loans (Real Estate Exchange, Inc.) and NAR continues to heat up, even though REX is reported to have shut down operations.

Industry News
May 16, 2022
Fannie Mae Seeks Innovative Housing Ideas

Sustainable Communities Innovation Challenge seeks ideas to advance racial equity in housing, focusing on addressing supply, funding and credit barriers.

Industry News
May 16, 2022
BSI Financial Hires Execs To Drive HR, Investor Reporting

Sean McGowan will lead HR, training and company culture; Shannon Clay to head investor reporting, reconciliations, and cash management initiatives.

Industry News
May 16, 2022
Home Point First Quarter Earnings Down Significantly

Net income down more than 90% from a year ago.

Industry News
May 13, 2022
New FHA Head Approved After Lengthy Delay

Vice president breaks tie vote for Julia Gordon nomination confirmation.

Industry News
May 12, 2022
Rocket CEO Predicts A Recession

He's seeing consumer spending decline through their TrueBill system

Industry News
May 12, 2022