If you live in a “trendy” metropolitan area or in New England like I do, fair warning… this post may depress you. However it’s something that deserves discussion and it’s important to take into consideration if you’ve thought about relocating to buy a home.
Each week on the Today Show’s money segment they have a professional real estate agent tell you what a fixed amount of money can buy you in different areas of the country. Full article here.
So I’d like to share what $300,000 can buy across several US states:
Ready for it?
Albany, Georgia
3 bed/2 bath
$290,900
Reading, Pennsylvania
6 bed/3 bath
$260,000
Jackson, Mississippi
4 bed/2.5 bath
$279,900
Now let’s compare this to what $300,000 will get you in a town just outside of Boston.
Arlington, MA
2 bed/1 bath
$279,000
Yowza. The difference is almost laughable.
Full disclaimer: While I chose this house because it is in my neighborhood, I have never seen it in person. It may very well have some great potential, however it likley needs some work to make it move-in-ready and add curb appeal, bringing the total cost to well over $300k.
So what does this all mean? What drives home prices in some cities up more than others? According to eHow Money, there are many factors that play into the “value” of a home:
- Economic health of a city
- Median income
- Available land for development
- Legal treatment of developers, tenants and landlords
- Quality of schools
- Available amenities
- Supply and demand
And sometimes what it ultimately comes down to is desirability, where some geographical locations are considered more desirable than others. But what drives this? What is desirable to some, may not be to others. For example, a lot of people would kill to live in NYC with all of the action, hustle and bustle – even if it means living in a 500 square foot studio. However others would prefer the peace and quiet of a home in a rural area, where really knowing your neighbors and community come above all else. FYI – I love Manhattan!
Tony and I definitely made some sacrifices to our house “wish list” so that we could live in our first choice town, but couldn’t we have been just as happy 3 miles away, where prices were more affordable? Couldn’t living near family and friends, no matter where in the state that may be, be enough? FYI – I love our house!
So what do you think? Is this fair? Is location all that?
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Yeah, when I told my sister what we bought our house in Somerville she laughed and said that amount would buy her a palace where she lives (Richmond, VA). But you pay for location and for us, being in the city, is worth it!
This is so depressing! I live at the Jersey shore and I can’t even get a condo for that price. Hence I live in a one bedroom apartment. It’s the price I pay to live a block from the beach.
-Sharon
The Tiny Heart