The Cost of Commuting

Time is money and a minute saved is a minute earned. So how much is a minute worth to you? No matter where you're thinking about settling down, your daily commute is always worth considering when buying a house. Whether your commute is a major priority depends on what you do for a living, your tolerance for traffic and how much you're willing to pay to shave some time off of your commute. The difference in price for an easier commute can be significant, but so is the time you can save by choosing to buy a home in an optimal location for your daily commute.

How the Length of Your Commute Influences Home Values

Based on a recent study by the New York Times, we can say with certainty that homebuyers are willing to spend more in exchange for a shorter commute. The study took place in an affluent area of Connecticut along the New Haven railroad line, and measured commute based on a home's distance from Grand Central Station in NYC.

• Based on the cost of a median-priced home in each location divided by the length of the commute from that home to Grand Central Station, homes in closest proximity to the station cost about $22,881 per mile of commute.
• In contrast, the homes farthest from Grand Central Station cost just $1,594 per mile of commute, but will require a commute of 90 minutes or more in each direction when you go to work.
• The large distance covered by the study and the high value of NYC-area real estate influence the final dollar figures, but the basic idea of paying more for a shorter commute plays out in real estate markets all over the country.
• Our corner of Ohio is filled with population centers of various sizes like Beavercreek, Wright Patterson Air Force Base and Kettering. So if you're aiming for a shorter commute, you'll have quite a few options in choosing the right neighborhood and price bracket for your budget.
• Even though the difference may not be quite as stark here, living within a short commute to economic hubs may still come at an increased cost. It's hard to put a price on the time freed up by a shorter commute, so the decision comes down to budget and personal preferences.
• The other side of the coin is that if you work from home, have your own business or otherwise have a short daily commute, you can save by buying a house in a community like Bellbrook, Fairborn or Springboro. You'll still have an easy commute to the cities of our area especially if you plan your trips around rush-hour traffic.
• Remember that commute time is just one part of the home value equation, and the New York Times study is meant as a rough outline rather than a comprehensive look. The general conclusions are still very valuable, especially when you consider the stark difference in prices for the shortest and longest commutes.

The conclusions about commute costs are interesting on their own, and shed plenty of light on the home-buying process as a whole. Remember that all of your priorities – commute, school district, neighborhood, and everything in between – ultimately influence the cost of your home. So it's really worth sitting down, considering your home buying goals and determining what you're willing to pay to achieve them. Contact Wright-Patt Realty and speak with one of our experienced real estate agents for assistance making the most of your home buying budget.