Real Estate

Homes and Real Estate Near Job Locations Could Be A Good Investment

A recent suvery found that people would pay more for real estate if it were closer to their work.  They would even make a lateral job move for that type of option.

"What  we are seeing signals a need for more homes to be constructed closer to job locations," said William Hudnut, discussing some survey conclusions at the National Association of Real Estate Editors conference in Philadelphia.

The survey, conducted in April and early May, involved more than 1,000 commuters nationwide, including those with commutes of less than 30 minutes, 30 to 60 minutes, 60 to 90 minutes and more than 90 minutes.

Here is a quick summary of this real estate and homes commuting survey:
A majority of those with annual household incomes less than $50,000 would be, at the minimum, somewhat likely to move closer to work if more affordable homes were available.

A large majority of people surveyed aged 18-34 would be, at the minimum, somewhat likely to make a lateral employment move in exchange for a shorter commute; in addition, that same group would be, at the minimum, somewhat likely to move closer to work if affordable real estate properties were available.

A huge majority of  respondents who commute more than 90 minutes daily said they would, at the minimum,  be at least somewhat likely to consider a lateral job switch to cut their commute time more than half.

To expand further, there are strong indications that people would also be willing to sacrifice disposable income in order to make commuting to work a little more comfortable.  Is this really any surprise?  How many of us would love to get out of the rat race at least a little bit by being able to lower our commute home by even 10 minutes.  However, employers, builders and others involved in these ultimate decisions don't seem to be readily seeing this situation.

"The reality is that moderate real estate can be developed near job locations in a way that provides a high quality of life, offering proximity to both amenities and work," Hudnut said.

The survey also queried employers, some with only a few employees and others with 100s, even 1000s.

Companies seem to recognize the ramifications of longer commutes and lack of affordable housing in their area.  Not too shocking, companies out West seemed to acknowledge this quickly. 

The homes commute survey found from companies:

Companies with more than 100 employees saw a lack of affordable homes near their area.

It was found that those same companies believed that longer commutes were having a negative impact on keeping quality low and mid-level employees.

This survey also found that at least some employers believe that commutes increase employee stress, trigger negative emotion, cause more absenteeism, and contribute to employee turnover.

Ironically, after these concessions, less than 37% of large companies believe it is important to be actively involved in providing employees with closer access to affordable homes.

I am not a real estate expert, but can see that real estate speculation near large employers in any area might be a decent decision, pending other factors. 

In addition, home builders, apartment builders, etc. need to be aware of these statistics.  It is a gift horse that is getting thrown under the bus it seems.  During these tougher times in real estate, it would be wise to use these studies such as this to possibly shift some company missions and consider helping to shape a happier employee for larger companies.

If you are ever in need of services in Colorado Springs, please be sure to contact a Colorado Springs REALTOR.  They can help you to figure out the new homes market as well as resale homes for sale, etc.  For nationwide assistance, contact your local REALTOR organization.