real estate

How a neighborhood holds property value

A wealth of desirable amenities
Next
Slide 3 of 6
Back
A wealth of desirable amenities

Having desirable amenities within the neighborhood is a second major factor in whether a neighborhood will appreciate or decline in property value, Schiller says.

In the world of real estate, "amenity" describes any asset within a community that people find desirable.

Schiller cites some examples of key amenities that can add value to a neighborhood:


  • Low crime rates.
  • Good public schools.
  • Parks.
  • Pleasing views.
  • Distinctive architecture.
  • A variety of retail stores.
  • An educated population.

Still, popular amenities by themselves aren't a guarantee property value will remain high, especially if the neighborhood is located in an area with a small or sluggish local economy, Schiller says.

"Any bump in the national or regional economy, and people can't find another job if they're at a high wage level," Schiller says. "When a high proportion of the value of real estate is based on amenities and not access to job opportunities, it is more vulnerable to collapse."

"Those are the places most likely to dive because people will say, 'I'm letting it go. I'm going to go back to where I can get my access to opportunity,'" he says.


Next
Slide 3 of 6
Back

 

 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
MORTGAGE & REAL ESTATE NEWSLETTER

Timely market news and advice for consumers ready to buy, sell or invest in real estate. Delivered weekly.

Blog

Holden Lewis

Much ado about mortgages

A bunch of agencies are trying to expand the number of would-be homeowners who can qualify for mortgages. But I'm skeptical that these efforts will help many people.  ... Read more

advertisement
Partner Center
advertisement

Connect with us