What are the main factors driving home values? The two biggest drivers are location and neighborhood quality.

Location and Neighborhood Quality

Location remains the most powerful factor influencing home values. Homes located in large metropolitan areas are valued at more than 60 percent higher than homes in non-metro areas. Proximity to jobs, transportation, amenities, and economic hubs all play a major role.

Neighborhood quality is just as important. The character, condition, and overall appeal of a neighborhood strongly influence value. Buyers are not just purchasing a house; they are purchasing the experience of living in that area, including safety, aesthetics, walkability, and community atmosphere.

Which Home Features Add the Most Value?

Home Size

  • Homes between 1,000 and 2,000 square feet are valued about 17 percent higher than homes under 1,000 square feet.
  • Homes between 2,000 and 3,000 square feet are valued roughly 30 percent higher.
  • Homes larger than 3,000 square feet carry an average value increase of 55 percent.

Bathrooms

  • Bathrooms are extremely important for home value.
  • Each additional full bathroom adds significantly more value than an additional bedroom.
  • An extra bedroom adds roughly 5 percent in value.
  • An additional half bathroom adds approximately 15 percent in value.

Age of the Home

  • Newer homes generally command higher values than older homes.
  • Homes built between 2010 and 2019 have values about 13 percent higher than homes built before 2010.
  • Homes built after 2020 average about 19 percent higher values.

Garages, Fireplaces, and HVAC

  • Garages and fireplaces each add approximately 10 percent to a home’s value.
  • Garages are valuable because they provide storage and flexible space for hobbies or workshops.
  • Fireplaces enhance comfort and atmosphere and can help reduce heating costs in some climates.
  • Central air conditioning and HVAC systems add around 7 percent in value, with a much higher impact in warmer climates.

Top 10 Markets for Home Appreciation

  • Knoxville, TN (88.4%)
  • Atlantic City, NJ (88.3%)
  • Morristown, TN (85.2%)
  • Hilton Head, SC (85.2%)
  • Vineland, NJ (82.9%)
  • Muskegon-Norton Shores, MI (82.3%)
  • Savannah, GA (82.1%)
  • Homosassa Springs, FL (80.4%)
  • Missoula, MT (80.3%)
  • Rome, GA (79.9%)

Bottom 10 Markets for Home Appreciation

  • Shreveport, LA (26.9%)
  • Lafayette, LA (26.5%)
  • Chico, CA (25.8%)
  • Santa Rosa, CA (25.2%)
  • Midland, TX (24.6%)
  • Houma-Bayou Cane, LA (24.1%)
  • San Francisco, CA (23.3%)
  • New Orleans, LA (21.8%)
  • Lake Charles, LA (20.5%)
  • Odessa, TX (18.3%)

Considering a Move Based on Home Value Trends?

Understanding what drives home values can play a significant role in determining where and when to relocate. If you are relocating out of state for affordability, appreciation potential, or lifestyle reasons, we at O’Brien’s Moving & Storage are here to help make the process smooth and stress-free.

  • Professional long-distance and interstate moving services
  • Full-service packing and secure transportation
  • Experienced in coordinating cross-country relocations
  • Clear communication and dependable delivery timelines

As an Allied Van Lines agent, we help families move confidently across the country. Whether you are chasing appreciation, affordability, or opportunity, our team is ready to get you there.