Ever since the Greeks built temples on high and the Egyptians erected pyramids in the sand, real estate has always been all about location. Never has that been more true than today, specifically when it comes to price. As millennials and active baby boomers flock to urban cores, embracing shared cars and bicycles, the discount for living farther away from town is growing.
"In my 26 years in the business, the price discount available to someone who is willing to commute has never been greater," John Burns of John Burns Real Estate Consulting wrote in a new report.
Take the Chicago area: Home prices in closer-in Deerfield are about 15 percent below their peak in 2006, but keep going out the interstate, and home prices are still as much as 30 percent below peak, according to the report. The same is true in Los Angeles, where home prices in the close-in suburb of Glendale are now 2 percent above peak, but further out in Palmdale they are a striking 37 percent below peak.