According to an analysis newly released by Zillow, buying homes as close as a 15 minute radius out from city centers can save thousands on housing costs.
For example, in Boston, homes 15 minutes outside of the city cost 13.4% less than those in the city center, totaling $57,260 in savings. In Seattle, the difference is 11.3%, and in Washington, D.C., the difference is 9.4%. The analysis factored in 34 of the largest metros.
Interestingly, in approximately 33% of the cities examined, compared to downtown, homes are pricier in suburbs. Some examples are Dallas-Fort Worth, Houston and San Antonio, Baltimore, Detroit and Sacramento. San Antonio has the highest premium rate, at 14.2%, and Dallas has the lowest, at 0.1%.
“For some home shoppers, it may be worth paying more to spend less time sitting in traffic, but for others, deteriorating mortgage affordability and lifestyle needs and wants make longer commutes a reality,” says Aaron Terrazas, senior economist at Zillow.