Want to increase your home value? Live near these amenities

Building wealth through homeownership

Nobody wants to buy a house and watch it lose value.

Purchasing a home is typically the largest financial decision a person makes in their lifetime. In addition to a colossal price tag, owning property is a major asset that requires investment and maintenance. It’s also a direct path to building personal and potentially generational wealth.

Curious how to increase home value? While there’s no surefire way to guarantee your home value to soar, living near certain amenities have shown higher likelihoods of boosting your property’s worth.

Things that increase home values

Borrowers typically move multiple times, owning different houses over the course of their lives. In 2021, the median homeownership tenure was 13.2 years, according to Redfin.

Like any other major investment, you want to see your property’s worth appreciate over time. Housing values almost always post long-term gains but many factors go into determining how much homes get bought and sold for; such as size, location, and the state of the housing market.

While borrowers can’t control all of those circumstances, there are several specific things to include in your search that have shown to be harbingers of greater home value and equity growth.

Back to school

From elementary all the way through college, proximity to highly rated schools is a desirable quality. Starting a family or already having children stand as major catalysts for home buying and large swaths of house hunters shoppers want those kids in the best schools possible.

The National Association of Realtors’ 2022 Home Buyers and Sellers Generational Trends Report showed a 23% share of all home buyers weighed the quality of a school district in their decision. That share jumped to a survey high point of 40% for buyers between 32 and 41 years old.

“The number one aspect in terms of protecting or growing home values is the quality of the school district. Homes located in a good school district tend to have very good values and those values tend to be protected more so than other markets,” said Rick Sharga, president and CEO at CJ Patrick Company.

A 2022 study from CoreLogic analyzed median home sales price statistics for ZIP codes of the top high schools, as defined by the U.S. News & World Report. Eight of the 10 top-ranked ZIP codes — not enough information was available for the other two — posted double-digit annual appreciation between May and July 2022.

The rates of growth among that list ranged from 10.5% all the way up to 32.6% year-over-year, with the median sales prices between $258,000 and $625,000 for single family homes and condos.
“Historically, being in a good school district always helped home prices have better valuations,” said Selma Hepp, chief economist at CoreLogic.

Food for thought

If the stomach is the quickest way to someone’s heart, the same can be said for home sale profits.

If you are asking yourself how to increase home value, properties near supermarkets tend to appreciate at relatively higher rates than those further away. Smart home buyers should consider where they’ll go food shopping when they’re house hunting, according to Sharga.

Attom Data Solutions released a study that looked at home price appreciation, seller returns on investment (ROI), and median sales prices price appreciation in U.S. ZIP codes with at least one ALDI, Trader Joe’s or Whole Foods.

“It’s a little bit of a causation versus correlation discussion because grocery stores carefully research where they’re going to put new locations, so they kind of go for good neighborhoods in the first place,” Sharga said. “It turns out that being located near grocery stores isn’t only a matter of convenience for homeowners but can have a significant impact on equity and home values as well.”

Other helpful amenities that help increase home value

There’s no shortage of home features sought after by today’s borrowers. Online real estate marketplace Trulia assembled a list of eight that can increase home values, which include hiking trails, neighborhood walkability, and convenient access to retail.

On a more empirical basis, Hepp says access to good views and outdoor space lend to advantageous home price growth. She also noted that these are more easily found in exurban locations versus urban locations.

For those looking in cities and densely populated markets, being close to transportation tends to be a plus for property values, according to Sharga. He also recommends researching the local economies for potential insights to how future home prices could change.

“If you’re moving into a new place, you want to look for a market where the population has been growing, where jobs have been growing, with low unemployment rates, and lower than average foreclosure rates. You’re looking for markets generally showing signs of economic health. That’s one of those things where rising tides will lift all boats,” he said.

Advice for home buyers

While home price valuations are market-dependent, there are plenty of things you can target to increase your chances for high growth and ROIs.

Of course, the sooner you lock in a mortgage and buy a house, the sooner you start building equity. And experts will tell you that as long as you can comfortably afford it, it’s never a bad time to buy.

If you’re ready to become a homeowner, reach out to a local mortgage lender to see the best loan and interest rate you qualify for.