Suburban Property
As a suburban nation with the majority of Americans living in the suburbs, the actual classification of suburbs had long been expected. Still, recently, three academic approaches for defining suburbs and suburban properties have been provided.
The first approach bases the suburban definition on a metropolitan area’s location that is not the main city and has less than 100,000 residents. The second one looks at homeownership rates, commuting patterns of the residents, and the percentage of single-family homes. The last approach looks at population density and the age of the real estate market.
Some conclusions can be drawn from this if we look at the overlapping patterns of population density, a high percentage of single-family homes, and their location.
What does Suburban mean in Real Estate?
When we look at the housing stock from a suburb, as mentioned above, the high percentage of single-family homes is the most apparent element we can see. There are some benefits to owning a home and suburban communities are aware of them. Statistics also show us that around 75% of suburban residents own their homes, and, again, 75% of the suburban homes are single-family homes. The difference between suburban and urban is glaring when we look at these numbers because less than half of urban residents own their homes, and around 40% of city homes are single-family homes.
Suburban properties are primarily single-family homes, but these homes do not fulfill another role than housing, unlike rural properties. People living in suburban properties don’t farm or raise livestock as there is no need. Also, running water, heating, and sewage systems are in place in most suburban homes, so there is no need to supply it themselves through wells and such. Suburban properties are connected and have access to all the cities’ utilities and, in some cases, to more. The amenities available in suburban communities makes them more appealing to families with young children, but, unlike the cities, suburbs are almost empty during the day as residents commute to work, school, etc.
Some key characteristics of suburban properties are:
- A limited amount of open space with little to no space available for farming or livestock;
- Mostly residential with some essential commercial properties to supply;
- More accessible housing costs than nearby cities;
- Proximity to urban areas.
Popular Real Estate Terms
Two or more parties agree to something. An example is when the two parties to a contract mutually agree to make certain revisions to it. ...
A mortgage loan is nothing more than a real estate debt instrument. Acquiring a mortgage loan is the most common method of financing a home in America. The benefits are tremendous and ...
One-time charge assessed by a bank or other financial institution at the closing of buying real property. The fee increases the effective cost to the borrower. One discount point translates ...
Term given to two depreciation systems defined by the Internal Revenue Service: The main system is called the General Depreciation System (GDS). Under GDS, most property is assigned to ...
Early American architectural housing style stressing a gambrel roof and overhanging eaves. ...
Capitalization rate used to convert the expected income derived from a property into its estimated asset value. The estimated asset value may be computed by dividing the annual income ...
Designing a home with a Spanish cultural flavor. ...
Mortgage for an extended time period (e.g., 25 years) Type of real estate investment trust (REIT) that gives long-term mortgages to real estate developers and contractors on new or ...
A situation where a real estate company spends more money than it receives within a stated period of time. This is an unfavorable situation that may result in financial difficulties. A ...
Have a question or comment?
We're here to help.