1. Home Prices
Home prices are a critical factor when choosing a neighborhood, as they can greatly influence your decision based on your budget. Compare property values in your target area with those in nearby communities to identify the greatest value. It’s important not to purchase more house than you can afford, but don’t forget to consider all of the perks of the area. Sometimes spending a bit more on a better area can yield long-term benefits. Evaluating overall affordability will help you make an informed choice and maximize your investment.
2. Crime Rates
Safety is another critical factor for homeowners when deciding where to live. High crime rates can negatively impact your peace of mind and lower the value of your property. They can also make selling your home more difficult in the future. Before making a decision on where to buy, research crime statistics for the towns and neighborhoods you’re considering buying in. You can use resources such as the FBI’s Crime Data Explorer.
3. School Ratings
If you have, or are planning to have children, living near highly rated schools is often a top priority. Homes in reputable school districts not only provide access to quality education but also tend to have higher property values. Even if you don’t have kids, buying a home in a good school district can boost your home's resale value if you decide to sell down the road.
4. Property Tax Rates
Property tax rates play a critical role in determining the overall affordability of a home, and they can differ significantly by town. High property tax rates may provide significant benefits for you in the long run, such as funding for public schools, well-maintained parks, and quality local services like road maintenance. However, property taxes can also put a strain on your monthly budget, especially if you’re purchasing a home at the top of your price range. It’s essential to research local tax rates when evaluating neighborhoods and understand what you’ll be paying for in return. Consider your long-term financial goals and strike a balance between affordability and desired location to ensure your new home is financially sustainable.
5. Cost of Living
The cost of living can vary widely between cities and neighborhoods. Key expenses like groceries, utilities, gas, and healthcare should align with your budget to ensure long-term affordability. While lower costs might free up money for savings or other goals, it’s essential to balance affordability with quality services, safety, and amenities that enhance your lifestyle. Online tools such as cost-of-living calculators can help you compare locations and find a home that offers both financial savings and a fulfilling environment.
6. Job Opportunities or Proximity to Your Job
For most people, proximity to work is a key factor in choosing a home. A shorter commute not only saves time and money but also reduces stress. Living near your workplace gives you more freedom to focus on family, hobbies, or personal goals. If you’re considering a career change, research the job market in the areas you’re considering buying in. Areas with a diverse range of industries and employers often provide greater job stability and growth potential. Additionally, access to reliable public transportation or major highways can make commuting easier.
7. Local Entertainment
Your surroundings can contribute to your lifestyle as much as your home itself. Choosing a location with vibrant entertainment options can make your community feel more engaging. Whether you’re a fan of dining out, exploring parks and hiking trails, catching the latest blockbuster in theaters, or attending live events, having access to local amenities is a game-changer. These factors can enrich your lifestyle and also make the area more appealing to potential buyers if you ever decide to sell your home.
8. Proximity to Relatives and Loved Ones
Living near family and friends can create a strong support system. Close proximity to family allows for easier childcare arrangements, frequent family gatherings, and staying connected with loved ones. When choosing a location for your home, assess your personal priorities and consider how far you prefer to be from your loved ones.
9. Real Estate Trends in the Area
Areas experiencing growth—marked by new housing developments, expanding businesses, or infrastructure projects—often indicate rising property values and new opportunities for residents. Similarly, growing populations signal economic vitality, enhanced local amenities, and improved job prospects. Purchasing a home in an up-and-coming area could be a great long-term investment. On the other hand, a booming location can also lead to increased traffic, strain on local infrastructure, and high home prices. Regions with stagnant growth or declining populations might suggest economic challenges, but they may offer more affordable housing and less congestion.
10. Home Resale Values
Even if you think you’ve found your forever home, it’s important to consider its resale potential. Life circumstances, such as job changes, family needs, or financial situations, can shift, and a property’s value will be very important if you decide to sell. Take a look at how property values in the area have trended over time. Websites like HSH.com allow you to see how home prices have changed for specific areas over the past five years. Areas with steady home price growth could be a good indicator that your home would increase in value over time.
Buying a home should involve more than just finding the perfect house. You should also ensure that the location of your new home aligns with your values, lifestyle, and financial goals. Whether you’re looking to buy your first home or start your next chapter in a new location, taking the time to evaluate your options will help you make the right choice. If you’re looking for guidance on purchasing a home in MA or RI, schedule a consultation with one of our dedicated mortgage experts today.