Bargains Await Those Willing to Commute
October 14, 2015
According to a new report from John Burns Real Estate Consulting, home buyers who are looking for large discounts should keep driving and look beyond urban cores.
"In my 26 years in the business, the price discount available to someone who is willing to commute has never been greater," John Burns says.
For example, near Chicago, home prices in Deerfield are about 15 percent below their 2006 peak. But for home shoppers who go even further from the city, prices are still up to 30 percent below the peak, according to the report. In Los Angeles, closer-in suburbs like Glendale are 2 percent above the peak, but places further out like in Palmdale, are 37 percent below the peak.
Learn how real estate pros put the commute question front and center during difficult job markets.
Suburbs have traditionally been a lure to families with children. But changing demographics and social behavior have been countering that trend lately. Younger generations are not as willing to commute. In a look at the driving habits of those ages 20 to 24, the report found that just 78 percent have a driver’s license compared to 93 percent in the late 1970s.
Source: “Want a Discount on a House? Drive Way Out of Town,” CNBC (Oct. 13, 2015)
Updated: December 06, 2019