SEATTLE, July 24, 2018 /PRNewswire/ -- Owning or renting a
home close to downtown comes at a cost in most of the nation's
largest metros, forcing millions of people to decide exactly how
much they're willing to pay to spend less time commuting to and
from work.
Homeowners will save the most money by moving 15 minutes away
from the city's urban core in Boston, Seattle,
Washington, D.C. and Chicago, according to a new Zillow®
analysis[i] in conjunction with HERE Technologies.
In the Boston metro, the
typical home becomes 13.4 percent less expensive -- about
$57,260 -- when it is shifted 15
minutes from the downtown core. The typical home in Seattle becomes 11.3 percent less expensive,
or about $54,599, when it's shifted
15 minutes out.
"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."
The report, using commute and real-time traffic data from HERE
Technologies, a mapping and location platform company, analyzed
34[ii] of the largest U.S. metros to help American workers make
that decision. It shows how much homeowners could save if they are
willing to add an extra 15 minutes to their commutes, and how much
they would need to pay to spend less time in their cars.
"Transportation and housing uniquely impact everyday life while
representing the two largest expenditures for U.S. households
annually," said Monali Shah,
director of intelligent transportation at HERE Technologies. "The
combination of HERE and Zillow data creates real-time insights for
residents, cities and policy makers to better understand the
relationship between mobility and housing costs in their
communities."
Here are some key findings from the report:
- Washington D.C. and
Chicago follow Seattle in greatest home value savings by
moving 15 minutes further from the city's core. Home values in
Washington D.C. fall by 9.4
percent ($37,709 in homeowner
savings), and home values in Chicago decrease 8.2 percent ($18,864 in homeowner savings).
- In some areas -- like in San
Antonio, Las Vegas and
Sacramento, home values actually
increase when they are located farther from the city's urban core
reflecting the enduring premium on suburban living in those
communities. In San Antonio, the
typical home would be worth 14.2 percent -- or $27,509 – more if it were 15 minutes farther from
the city's core.
- In San Francisco, longer
commute times are associated with a 5.5 percent increase in the
median home value. This is likely spurred by high-end housing in
nearby areas like Marin County and
Palo Alto.
- Controlling for home size, Boston, Washington
D.C. and San Francisco have
the costliest urban core. The typical home in downtown Boston is valued at four-times more per
square-foot than that same home 15 minutes or more from the
core.
- The price disparity between central and outlying homes is less
extreme for renters, but the trend still exists. Washington D.C. and San Francisco have the most expensive downtown
areas for renters, with rent per-square-foot within 15 minutes of
downtown more than twice as high as in the rest of the region.
Data from this analysis is available down to the zip code level
for each metro analyzed. Email press@zillow.com for additional
data.
Metropolitan
Area
|
Homeowner %
Home Value
Change by
Moving 15
Minutes Out
|
Homeowner $
Home Value
Change by
Moving 15
Minutes Out
|
% Change in
Rent by
Moving 15
Minutes Out
|
$ Change in
Rent
by Moving 15
Minutes Out
|
Los Angeles-Long
Beach-Anaheim
|
-2.1%
|
-$13,001
|
0.6%
|
$17
|
Chicago
|
-8.2%
|
-$18,864
|
-7.4%
|
-$117
|
Dallas-Fort
Worth
|
0.1%
|
$308
|
-2.1%
|
-$32
|
Philadelphia
|
5.1%
|
$12,447
|
0.4%
|
$5
|
Houston
|
8.5%
|
$17,567
|
0.8%
|
$12
|
Washington
|
-9.4%
|
-$37,709
|
-8.7%
|
-$172
|
Miami-Fort
Lauderdale
|
-1.4%
|
-$3,799
|
-1.3%
|
-$24
|
Atlanta
|
1.4%
|
$2,935
|
1.5%
|
$21
|
Boston
|
-13.4%
|
-$57,261
|
-12.5%
|
-$293
|
San
Francisco
|
5.5%
|
$32,813
|
0.3%
|
$7
|
Detroit
|
8.2%
|
$15,504
|
11.0%
|
$110
|
Riverside
|
-1.9%
|
-$6,279
|
2.1%
|
$36
|
Phoenix
|
-3.4%
|
-$8,646
|
-3.7%
|
-$49
|
Seattle
|
-11.3%
|
-$54,599
|
-6.2%
|
-$125
|
Minneapolis-St
Paul
|
-4.7%
|
-$12,601
|
-4.4%
|
-$66
|
San Diego
|
-7.1%
|
-$40,209
|
-2.9%
|
-$68
|
St. Louis
|
2.0%
|
$3,423
|
7.0%
|
$67
|
Tampa
|
-2.3%
|
-$4,692
|
0.2%
|
$2
|
Baltimore
|
7.3%
|
$21,565
|
4.2%
|
$67
|
Denver
|
-0.2%
|
-$735
|
-1.3%
|
-$24
|
Pittsburgh
|
-6.3%
|
-$11,132
|
-13.2%
|
-$154
|
Portland
|
-5.0%
|
-$19,754
|
-4.1%
|
-$70
|
Charlotte
|
-5.0%
|
-$10,689
|
-3.9%
|
-$51
|
Sacramento
|
9.4%
|
$35,817
|
4.4%
|
$76
|
San
Antonio
|
14.2%
|
$27,509
|
6.1%
|
$77
|
Orlando
|
-5.0%
|
-$11,470
|
-3.6%
|
-$51
|
Cincinnati
|
-2.6%
|
-$4,631
|
-0.5%
|
-$5
|
Cleveland
|
7.6%
|
$11,539
|
4.0%
|
$40
|
Kansas
City
|
2.3%
|
$4,572
|
3.4%
|
$36
|
Las Vegas
|
13.9%
|
$35,606
|
2.5%
|
$31
|
Columbus
|
-2.5%
|
-$5,093
|
3.5%
|
$41
|
Indianapolis
|
7.4%
|
$12,268
|
11.6%
|
$125
|
San Jose
|
-7.6%
|
-$67,246
|
-4.1%
|
-$136
|
Austin
|
-0.1%
|
-$262
|
-5.0%
|
-$78
|
Zillow
Zillow is the leading real estate and rental
marketplace dedicated to empowering consumers with data,
inspiration and knowledge around the place they call home, and
connecting them with great real estate professionals. In addition,
Zillow operates an industry-leading economics and analytics bureau
led by Zillow Group's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of
economists and data analysts produce extensive housing data and
research covering more than 450 markets at Zillow Real Estate
Research. Zillow also sponsors the quarterly Zillow Home Price
Expectations Survey, which asks more than 100 leading economists,
real estate experts and investment and market strategists to
predict the path of the Zillow Home Value Index over the next five
years. Launched in 2006, Zillow is owned and operated by Zillow
Group, Inc. (NASDAQ:Z and ZG), and headquartered in Seattle.
Zillow is a registered trademark of Zillow, Inc.
HERE Technologies
HERE, the Open Location Platform
company, enables people, businesses and cities to achieve better
outcomes by harnessing the power of location. The company's mapping
and location technologies are used by transportation agencies
around the world to operate more effectively today and prepare for
the next generation of connected and automated vehicles. Investors
in HERE include Audi, BMW, Bosch, Continental, Daimler, Intel and
Pioneer. To learn more visit http://360.here.com and
www.here.com.
[i] For methodology, visit Zillow.com/research or email
press@zillow.com.
[ii] New York metro not
included.
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SOURCE Zillow