In the early '90s, every American had a dream of owning a home with white fences and lush greeneries in the suburbs. However, times have changed and more people are moving towards living in the city. Taking the financial aspect into consideration, which is a better investment option?
In an earlier report from Time magazine, it has been revealed that more Americans are choosing to live in cities rather than purchase a home in the suburbs. According to the report, population growth increased because of net migration.
"The 25- to 34-year-old age group is focused on living near their peers. They want to be socially engaged and live near work. They want to reduce their automobile use. All of those things aim at high-density, urban-type living," said chief economist for the National Association of Homebuilders, David Crowe.
However, it turns out the reasons mentioned above were not the only things that attracted people into purchasing homes in cities than getting one in the suburbs. According to Realtor.com, homes in cities were found to be a better long-term investment option.
The publication noted that homes located in cities were found to appreciate faster as compared to those in suburban locations. Values of city homes have reportedly grown by 11.3 percent in a year, as compared to suburban home values, which only appreciated by 6.7 percent.
There are, however, other things that you need to consider when choosing between buying a home in the city or one in the suburbs. Major cities were found to have a higher crime rate when compared to the surrounding suburban areas.
The median house value for homes sold in cities is also significantly higher than those in the suburbs. Living in the suburbs may also be a better option for those who are raising their kids and would want a more peaceful life away from the hustle and bustle of city living.