Home Buying in 60647>Question Details

Zac Davis, Home Buyer in Chicago, IL

Does the climate of a city affect the property value?

Asked by Zac Davis, Chicago, IL Mon Feb 7, 2011

Snow, ice, rain, humidity, heat, dryness, etc.

Help the community by answering this question:

Answers

20
Zac

Of course it does. As one mentioned, people need to live where they need to live, true but what about all the people who live where they prefer or desire to live? Don't you think climate might be a big part of that decision?

Yes, property values are high in many areas with a harsh climate but imagine how much higher they would be if they had better climates.

Oggi Kashi
Paragon Real Estate Group DRE1844627
Web Reference: http://www.oggikashi.com/
1 vote Thank Flag Link Mon Feb 7, 2011
Location, Location, Location. It is all about location. In a city that is humid you will find different areas that demand a higher price based on......Location
1 vote Thank Flag Link Mon Feb 7, 2011
Umm I am very surprised at these answers. Have you seen property values in Florida lately? Not too "hot" if you ask me. Climate may be an underlying factor, but it is not a major one. The economic factors are much more important because people usually want to be within reasonable distance of their work. Cultural aspects are important as well. People with money like to live in areas that have museums, parks, interesting architecture etc.

Bodies of water can make a huge impact on price though. People love water views. However, if it is in a floodplain, then this could have a negative effect.

New York City has some of the highest property values in the world and it has very variable weather like Chicago.
0 votes Thank Flag Link Mon Apr 30, 2012
I dont know ho you can calculate the impact of weather on property value but 1 thing is for certain; downward decline in Chicagos population growth. As the saying goes: "Chicago. Come for the Weather. Stay for the Taxes."
0 votes Thank Flag Link Tue Mar 1, 2011
No climate does not effect the property value of home. It depends based on location if any family AND corporation prefer to establish residence OR business.


Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Tue Feb 8, 2011
This question justified the excess double digit year over year appreciation 200-2007 in CA, FL, AZ. Now those states are hurting the most with super severe correction. Bill, wasnt last year the first year more people left florida than moved to FLA? FLA has no income tax, great weather and rotten school report cards. Oggi, I wouldn't live in San francisco because of earthquakes even if it were half the price with the great weather! Plus CA school systems aren't funded due to prop 8. Esoteric question, alot of people rationalizing where they live and sell real estate.
0 votes Thank Flag Link Tue Feb 8, 2011
Just playing devil's advocate here. One factor of property value is supply and demand for properties in an area. If for example the average temperature of the area drastically changed to a low or high extreme from the current norm it could potentially cause people to leave an area, thus decreasing demand and increasing supply. So it is POSSIBLE that climate could impact property values. On a practical note though, I think that for the most part climate doesn't change fast enough for us to notice so I don't think it is a contributing factor to the change in property values over time in the short run.

Although, bad storms which could be associated with natural disasters are another topic altogether. Just consider Katrina or some of the Midwest tornadoes. Homes that are wiped out by weather definitely go down in value and pretty quickly.
0 votes Thank Flag Link Mon Feb 7, 2011
Spokane, Washington's coldest month is December when the average temperature overnight is 21.6°F. In August, the warmest month, the average day time temperature rises to 82.6°F. Most of our homes are sold in the spring. Mild weather is a huge benefit to a town such as ours.

Marianne Guenther Bornhoft
Windermere Manito
509-879-3779
0 votes Thank Flag Link Mon Feb 7, 2011
I'd say no also. Look at the big bubble states: California, Florida, Neveda and Arizona!! I think the vast speculation SOUGHT nice weather! I just ran the numbers or my Keller Wiliams market center here in Santa Rosa, California and our median price is down 58% from Jan 2005 AND 6% below the median of 2001!!! What we had was a gigantic pyramid! And we're a "destination" county, Sonoma County is considered "Tuscany" west! Some of the finest wine growing appelations in the world! We even have a stunning, picture postcard Coast! But--a 58% drop in the median home price in 6 years! It was 80 degress here for super bowl Sunday!!
0 votes Thank Flag Link Mon Feb 7, 2011
Well yes and no. If climate was the only factor Florida real estate wouldn't be in the tanker and Toronto real estate woudn't be soaring. But many areas are desireable because of their climate. If industry, jobs and such are built there the people will follow. Personally I'd pay more for a home in San Diego than I would say in Detroit.
0 votes Thank Flag Link Mon Feb 7, 2011
There are a lot of factors including land scarcity, jobs, and growth. Some places with great weather, like in California, are suffering from major price declines due to job leaving the state.

Here is a great website that show price changes in the major metro areas.

http://www.papereconomy.com/CSI.aspx

All the best,

Mike
0 votes Thank Flag Link Mon Feb 7, 2011
Hey,

Hawaii, California, Arizona, Florida........Alaska, North Dakota, Wyoming, West Virginia.....

The fact that 1,000 people are moving to Florida daily doesn't hurt property values, even in these difficult times. But there's much more to this success formula than climate....entering into the formula are, employment, social & cultural opportunities, recreation, education, health and safety etc.

Generally, the locations that appear the most attractive to the public capitalize by scoring well in all of the above catagories.
0 votes Thank Flag Link Mon Feb 7, 2011
Not so much value. Manhattan is not know for it's crisis air, or sunny beaches. If you look at Orange County, CA I suppose in some sense it does. Properties close to the desirable costal microclimates ten to be more valuable.

I do think it does affect the traffic and volume of buyers actively viewing homes. Extreme climates have activity cycles that correspond to bad and good weather. I also had a spike in web traffic during the blizzard, so perhaps, people shop online when the weather is terrible...who knows. Point is, local economic factors tend to drive housing prices. If people can't afford to make a living in a region, demand will drop, and so inevitably, will housing values. Of course, if the golf is good, or there's room for a yacht.....maybe not by much.

Best Regards,

Wayne Beals
Keller Williams
312 77 BEALS
312 772-3257
wbeals@kw.com
http://www.waynebeals.com
Web Reference: http://WWW.WAYNEBEALS.COM
0 votes Thank Flag Link Mon Feb 7, 2011
Why do 9+Million People live in Los Angeles County? Because they love Smog? Of course not, because they love the weather. Now, is a buyer going to choose to live in Chicago over western suburb of Naperville, because of the weather, highly unlikely. Will a person choose Chicago over Minnesota because of weather, very big possibility.

Zac, i hope you have found this to be useful and resourceful answer. If you have please mark it as best. Thank you,

ps. here is a blog i wrote about home buying.
http://2000shortsales.blogspot.com/2011/01/buying-house-cost…
0 votes Thank Flag Link Mon Feb 7, 2011
No.

If people need to live in chicago, people need to live in chicago. New York has pretty bad weather, and Manhattan has some of the most expensive real estate in the country.
Its about the town/city itself, not the weather.

Matt Laricy
Americorp Real Estate
Brokers Associate, e-PRO
mlaricy@americorpre.com
708-250-2696
0 votes Thank Flag Link Mon Feb 7, 2011
My opinion is no. In Northeast OH, we have 4 seasons. Many people like the variety in weather.
0 votes Thank Flag Link Mon Feb 7, 2011
Yes if the area you are looking to purchase in is considered discretionary (e.g. vacation homes, etc...); however, most people search out homes based on proximity to work, family, or schooling institutions (though some investors particularly seek out rentals in high-density areas to ensure continuity of rental income.
0 votes Thank Flag Link Mon Feb 7, 2011
Perhaps that is part of the reason Illinois has had a loss of population for many years in a row, but I have never had anyone ask about the weather and have no idea how that would be calculated.
0 votes Thank Flag Link Mon Feb 7, 2011
This factor, along with other factors, is part of the "big picture" for what the market will bear for each area. And what the market will bear can be seen by the recent sales of property for each area.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Mon Feb 7, 2011
Zac,

I've never had anyone ask that question. I'm sure you'll get some very analytical responses to your question here.
0 votes Thank Flag Link Mon Feb 7, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer