How Your Neighborhood Impacts Your Home’s Value

How Your Neighborhood Impacts Your Home’s Value
  • Opening Intro -

    In real estate, location is one of the most important factors in determining the market price of a home.

    Natural landmarks and man-made structures can have a tremendous impact on a property's value.


Here are a few ways your home’s location will impact its value.

Crime and Social Issues

Crime rates dictate the desirability of a neighborhood. High crime rates tend to bring down the value of a home significantly. Police reports and other public records can reveal annual crime data in a given residential area. Social issues such as civil unrest, protests, homelessness and poverty also influence the value of a home. The site is an example of a source that offers crime data about neighborhoods throughout the United States.

Natural Hazards and Risks

Some neighborhoods are located in areas that are prone to natural disasters. For example, homes near creeks and lakes are at high risk of flooding. Similarly, homes that are located near steep hills and rocky mountains are at risk of mudslides and falling rocks. Some homes lie right in the middle of the pathway of earthquakes or hurricanes. By law, homeowners must disclose all information about natural hazards when listing a property for sale. Man-made facilities such as nuclear power plants and water  treatment plants can also bring down the value of a home.

Traits of Neighbors

Unkempt lawns, shoddy structures and disregard for community standards can drop the value of a home significantly. Although there are not definitive rules for what constitutes a bad neighbor or neighborhood, keep in mind that if the neighborhood turns people off, the value of the home will be lower. Even something like a neighbor who constantly has guests that occupy your parking spots can devalue the home.

Foreclosed Homes

Although you may not assume it right away, an area with a number of foreclosed homes will have a large devaluation of the neighboring homes. According to a study referenced by, the presence of a foreclosed home within 250 feet will drop another home’s value by an average of 1% per foreclosure, an impact which may be the single greatest factor in a decrease in home value.

Premium Neighborhood Amenities

Some features and amenities can significantly increase the value of a home. A neighborhood that is located near a major arena or museum is considered to be very desirable. Even if there is heavy vehicle traffic in such a neighborhood, there is still a premium price to pay for being close to major attractions in a city or town. Private country clubs are also amenities that increase a neighborhood’s value. If you are interested in upscale locations, The Dhanji Team is an example of a group of real estate agents in Florida that specialize in dealing with sellers and buyers of upscale homes in desirable neighborhoods.

Excellent Municipal Services

A desirable neighborhood has well-paved roads and excellent infrastructure. Property taxes are allocated towards resurfacing roads, maintaining public light posts and operating the sewage systems. Residents of upscale neighborhoods can also enjoy quick response times to accidents such as water main breaks and burst gas pipes.

A neighborhood can either boost or depreciate the value of a home. Natural factors and human activity influence the price of a residential property, so consider the variables mentioned above when researching prospective neighborhoods.

About the author: A recent college graduate from University of San Francisco, Anica loves dogs, the ocean, and anything outdoor-related. She was raised in a big family, so she’s used to putting things to a vote. Also, cartwheels are her specialty. This article was cowritten by the real estate experts at


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