Real Estate News

New home buyers shouldn't neglect the suburbs

Published: 26 Jan 2017

There are clear barriers to purchasing a home in the suburbs, but that doesn't mean there can't also be some good reasons to invest in property here. Given the changes in possible homeowner age, the suburbs could become appealing again as a new generation looks for an alternative to crowded, overpriced cities.

In some cases, the suburbs may prove to be a surprisingly good investment for owners that want to settle in a single place for a while. A recent report from SmartAsset.com., for example, recently listed at least a few suburbs among its top areas in a study on "healthiest housing markets." Mlive defined Clawson, Forest Hills and Jenison all as suburbs. Of these, Jenison rated the highest on the Smart Asset list, with a healthy market index of 97.41.

In addition, home costs made up 18.3 percent of income. Smart Asset described the ideal "healthy market" as one in which buying and selling maintains at a steady pace. Another factor necessary for the index was the "risk of loss" for homes in these assessed communities. That plays into the same concerns of keeping a home for some time and being able to buy confidently.

The stereotype may be that Millennials don't want to live in suburbs, but a Fortune piece argued differently last May. According to this source, there could be multiple reasons for the next crop of buyers to look to suburban homes, from better financial situations to a real deep-seated preference for the suburbs, based on misinformation over the years.

Whatever the reason, there's some hope for those who want to see the suburbs more populated soon. On top of this, new buyers should evaluate the risks and purchase title insurance to ensure the same stability applies to their claim of title as to their market.