The real estate market is one that is prone to fluctuations as at one period it might be facing a boom while at another it is deep in a bust. With the shakiness of the real market, home owners still have other things to consider what affect their home values other than the market itself. This could range from things such as bad neighbours to an unfortunate sinkhole at the back yard. The following are things that affect the increase or decrease of home values:

Natural Disasters

Number one home value decider is the unpredictable factor of natural disasters. There are some states in the United States that are known for being the resting spot of natural disasters such as hurricanes, tornados etc. If you happen to find yourself in an area that has this problem, then the chances are your home value on the market would be going for a low price. Homes in disaster prone areas are also made of materials that can be easily replaceable so as to minimize the amount of damage incurred after the disaster. Homes that are situated in safe areas are valued higher than those in disaster prone areas.



Another factor that contributes to the value of a home is the presence, absence and proximity of infrastructure to the area in which the home is situated at. Homes that are close to public transportation, medical centres, shopping malls, parks, leisure areas etc. have high values as they are usually considered to be necessities of life and having them at hand increases the value of the home. Homes that are in places that do not offer this or do not offer closeness to such infrastructure are valued lower as a result. You might find that there are two homes within 5 kilometres of each other and offer the same features and might also bear similar appearances but still one attracts a higher price than the other and this is because of the infrastructure.


Crime is an illegal conduct that often acts as a social deterrent and it also affects the portrayal of the neighbourhood around which the home is situated. Most individuals consider the crime rate of a neighbourhood a home is located at before anything else. If your home happens to fall into a location that has a high crime rate, chances are no one would want to leave themselves open to being a victim and as a result the value of the home has to make accommodations for this fact. If on the other hand the neighbourhood of your home is one that can offer security to potential buyers and has a low crime rate, this can help to boost the value of the home.


Amenities in this case cover things from gyms, swimming pools, spa, basketball court, tennis court, golf etc. If the home can offer this then chances are the value of your home will most likely increase on the market.

For more information click here to see the Economist’s interactive guide on the American housing market.