Boston and Seattle Top Zillow's List of Places Where it Pays to Move Farther Out

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 [email protected] for additional data.

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 [email protected]. 
[ii] New York metro not included.

SOURCE Zillow

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