Understanding Property Values within US Cities

May 10, 2017 WorldMaster

 

 

Finding a suitable property in a big metropolis is a daunting task. You will not have all the time and resources to verify and check each open site. There are just so much lots and too many factors to consider. In this situation, it is advantageous to understand the development of property values in a City. And where better to learn it but an American Planner Homer Hoyt.

 

 

 

 

Homer Hoyt is a land economist and a real estate appraiser. In his career, he studied the evolution of cities. In his book, “The Structure and Growth of Residential Areas in American Cities” and “One Hundred Years of Land Values in Chicago”, we can glean valuable knowledge in the development of values within a city.

 

Homer Hoyt proposed that there are common characteristics for high value residential and commercial developments.

 

1. High Value Residential Growh tends to proceed from a given point of origin along established lines of travel or toward another existing nucleus of buildings or trading centers.

 

2. The zone of high rent areas tend to progress toward high ground which is free from the risks of floods and to spread along the lakes, bays, rivers and ocean fronts, where such waterfronts are not used for industry.

 

3. High Rent Residential Districts tend to grow toward the section of the city which has free open country beyond the endges and away from “dead end” sections which are limited by national or artificial barriers to expansion.

 

4. High priced residential neighborhood tends to grow toward the house of leaders of the community.

 

 

5. Trends of movement of office buildings, banks and stores pull the higher priced residential neighborhoods in the same direction.

 

6. High grade residential areas tend to develop along the fastest existing transportation lines.

 

7. The growth of high end neighborhoods continues in the same direction for a long period of time.

 

8. Deluxe high rent apartment tend to be established near the business centers in old residential areas.

 

 

Now that we know which areas are going to exponentially explode in terms of value, we know where to look.

 

Choose wisely.

Architecture Style