Suburb vs. City Living

Published on January 30th, 2015

Pros and Cons of Investing in a Home in the Suburbs vs. Cities

One of the biggest choices that someone can make is if they want to purchase property in the hustle and bustle of the city, or the calm, peacefulness of the suburbs. This choice does not come easy to many, and making the decision can have a lasting impact on finances and expenses. Both environments have pros and cons. But, which one can give you the most bang for your buck?

City Living

When it comes to city life, most people might have to become accustomed to the noise, the lights, and the traffic. This all plays a big role in deciding if being a city slicker is the right fit for you. Also, buying a home in the city normally does not come cheap as there may be costs that you traditionally do not realize in the suburbs (parking, maintenance fees, extra storage, etc.). In most American cities, the average home is much smaller than a suburban home and can burn a deep hole in your wallet – normally more than the average suburban home. There are many other factors to consider when choosing to buy in an urban setting, such as: How much square footage you are getting for your money? What schools are around (in case starting a family is in your future)? If you were to sell, is the resale value worth the original investment? These are all great questions to consider before deciding it’s time to turn into a city slicker. On the opposite side of the table, is living in the city more convenient due to the close proximity of work, art districts or major events?

Suburban Life

On the other hand, living in the suburbs may give you peace and quiet, a bigger home for less money, more room to expand your family and more space to have those backyard barbeques. The average American home in the suburbs costs around $175,000, whereas the average home in a city like New York will be around $554,100. Other important things to take into consideration are: Is the demand for houses in the area you’re looking to buy high? Is it expected to increase or decrease over the next few years? Normally, new developments pop up all of the time in growing suburbs, but in a city setting, space may be limited and the only way to build new properties is to build up, towards the skyline. Living in the suburbs also might mean making a commute to a nearby city and depending on traffic and how long the commute is, your expenses could be increase due to vehicle maintenance and gasoline. However, if you live and work in the city, you could save some money by using public transportation, or by being eco-friendly and walking!

No matter your choice, from an investment perspective, it’s best to start your research by speaking with a mortgage professional and setting a budget that’s reasonable for your finances… Click here to speak with a member of our Housing Buzz Team.

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