If the small town where your house is located is about to become a city, it is great news! The growth of your quaint little town can bring big changes to the current value of your property. There are many different aspects to how the value of property changes. Some of them are known to people while a few other aspects remain unknown to many.
For instance, homes in New York City would always be expensive compared to those in Arizona or Phoenix. However, there are some lesser-known factors that impact the value of homes. Here, we have identified some key areas to consider with regard to your property.
Insurance
With the growth of a town, the chances of it getting incorporated increases. Once it achieves the ‘city’ status, there is an increase in the demand for services. As a result, you would witness a growth in firefighter forces and the local police. This is subsidized by city taxes.
The transition of your town to a city involves some major changes. One of them is a shift from pure volunteer services to paid, professional services. The police, EMTs, firefighters, and other emergency services add an extra layer of insurance to your health and property.
It would certainly have a positive impact on the value of your property. The appraisal of your house is impacted by the value of the homes around you. This is owing to the growth in the value of real estate with an upgrade in services.
Industries
Growing cities tend to attract large industries or companies. This results in the growth of jobs and improves the local economy. There are certain industries that can significantly raise the value of your house. When a major company opens its unit in a newly incorporated city, property values in that area increase. There are certain industries that may not increase property values.
One of the powerful influences on the values of homes in a particular area is public perception. It is, therefore, absolutely necessary that you stay updated on the developments in your neighbourhood. It can be a great way to improve and protect the value of your property.
Walkability
New cities tend to invest more in the development of downtown areas. This would mean having a lot of small shops and places for enjoying a quick snack. Cities with historic areas are also revitalizing their downtowns and becoming a part of the ‘new urbanism’. If your house is located in or around these walkable areas, your property value would increase substantially.
When the real estate market near your property improves, you might witness an improvement in your home equity. Such improvements are both a source of convenience and price-rise. If you can walk from one coffee shop to another in your neighbourhood, your house has a significant value. Walkability is often a big driver of property values.
Neighbourhoods that have walkability above the average can add thousands of dollars more to the value of the properties. Considering this fact, it would be easy for you to see why people prefer walkable neighbourhoods. The presence of sidewalks and coffee shops do not always guarantee higher property values. Such features act more like positive signs that you have increased your home equity.