Why is Location Important When Buying a House

Written by Posted On Friday, 10 May 2019 10:13

While the location is a critical factor to consider when buying a house, many people don’t give it as much thought as they should. And that’s a mistake. So, why is location important when buying a house? For one, the price and condition of a house can be changed. People even change the sizes of their homes. However, the location can be a bit more difficult to change.

Why is Location Important When Buying a House - Things to Consider

Whether you are buying or building a home, location is a crucial thing to consider. The supply and demand are crucial market forces that will always have a significant role in determining the value of most things, including real estate. The housing supply in desirable locations is limited to the number of homes in that location. As such, it’s the location that creates desirability, desirability then drives demand and finally, increased demand is reflected in higher real estate prices. Besides local amenities such as restaurants, grocery stores, and entertainment areas, here are some factors to consider when looking for a great location to buy a house.

Reverse Engineer the Future of The Neighborhood

Many people think about buying in good/safe neighborhoods. There’s no harm in that, but even more crucial is to ask yourself where the neighborhood will be in the next five years or so. For instance, buying in a “bad neighborhood” offers what buying in a “safe neighborhood” doesn’t, a higher floor. This means the neighborhood is less likely to depreciate as its already considered undesirable. In the long run, this reduces risk and you could benefit from significant value appreciation. The trick is to stop looking at a neighborhood’s current status and instead focus on its future potential.


If you’re buying a home to raise a family and want a good school district, then location becomes even more critical.  If you’re reverse engineering a location, ask yourself whether there are any plans to develop brand new schools in the area or whether the schools that are there are rated well, for example. Many people will not consider buying a house in a location where schools are bad, which makes schools among the most important factors in a location.

A safe way to invest in real estate, therefore, is to buy a house in a great school district.


Hassle free commutes to work and school is a top priority for many home buyers. Whether its public transportation, self-driving, walking or biking, commute time is an essential factor when choosing a location.

In a major city, buying a house where the city is planning to build a new train stop, for example, is the way to go. Once the train becomes available, the value of your property will grow significantly. It’s also likely that developments such as a train station will bring other amenities such as restaurants and grocery stores.

Time is a valuable asset and that’s why people will pay more to save as much time as they can.

Bottom Line

People still ask themselves why is location important when buying a house. And the answer is simple. It’s the most important factor when buying real estate. Therefore, make sure you thoroughly research the neighborhood before moving in.

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Dalia Rotrammel

Cleaning business for over 20 years. Property Management. Mother of 2, grandmother of 1 beautiful girl. Foster parent.


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