The Economic Perspective: “Location, Location, Location”

Mary:  This is Mary Walden with economist MW welcoming you to the economic perspective.  Today’s program looks at location, location, location.  Mike, it’s often said those three words are the top three factors in real estate.  Give us the background of their importance.

 

Mike: Summary Answer

  • Say you’re looking to buy a home
  • Not only are size and features important, so too is proximity to job, schools, shopping, etc.
  • Same for a business – desire closeness to customers
  • Reason why same house, or same land site, will cost more if closer to factors important to a family or business
  • And recent research shows location has actually become more important – just since 2010, being closer is worth, on average, 20% more
  • Both buyers and sellers of real estate should remember those three words
  • I’m MW

 

Mary:  And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.