A City View Can Devalue Your Property
We all want a room with a view. But not all views are created equal in the game of real estate.
A recent study found that while most states in America value water and nature views, the country is divided when it comes to city views. In 22 states, getting a panoramic of the skyline can cause a property's value to drop — sometimes by as much as 55 percent!
These are the states where a city view can cause your house to lose value.
Cost of a City View in Illinois
If you're planning to buy a house in Illinois, make sure it doesn't face the city. A window into the metropolis can devalue your home by 28 percent.
It's difficult to know whether this is the case in the entire state, but it's safe to assume that this doesn't apply to downtown Chicago. Illinois' largest city is known as the birthplace of numerous architectural movements. Its suburb, Oak Park, even boasts a large concentration of Frank Lloyd Wright houses.
Still, while a view of Willis Tower probably won't hurt your investments, other cities may not be as immune to the state's aversion to cosmopolitan scenery. Water views, on the other hand, raised the value of properties by 50 percent.
In general, people in Illinois want to enjoy Lake Michigan without pesky skyscrapers interrupting the panorama.
4. New Mexico
Population: 2.097 million
Largest city: Albuquerque
Average home value: $277,617
City view devaluation: 30.8%
Cost of a City View in New Mexico
New Mexico is blessed with great natural beauty, thanks to its deserts, arid mountains, and red-hued rock formations. It's easy to see why people don't want a city view. It usually means not having a nature view. And in this state, there's no debate as to which one is superior.
Taos and Santa Fe are undeniably pretty. But besides them, there are few cities that are worthy of note when it comes to design and architecture. Sure, Albuquerque is also nice, but it's mostly because of its surrounding nature. Take that away, and you get a cookie-cutter Southwest city with not much to look at.
Unless you're in the two aforementioned towns with pretty skylines, you may want to be wary of city views when buying real estate in New Mexico.
Population: 1.924 million
Largest city: Omaha
Average home value: $230,672
City view devaluation: 33.2%
Cost of a City View in Nebraska
Nebraskan cities like Lincoln and Omaha are not eyesores, but they also aren't anything special. Perhaps this is why people don't want to see a city when they look out their windows.
In terms of nature, the state has some interesting valleys and rock formations, but most of it is a vast expanse of prairies. You'd think that a tall building here and there would be a nice visual break from the monotony of the landscape. But it seems like Nebraskans have learned to appreciate the simple beauty of their state and don't want it any other way.
That said, Omaha is among the most affordable cities in the U.S, so you may want to consider buying property here. If you do, just make sure to avoid a view into the city proper.
Population: 3.949 million
Largest city: Oklahoma City
Average home value: $171,057
City view devaluation: 42.2%
Cost of a City View in Oklahoma
Oklahoma City is a much more beautiful place than most people realize. Yes, it has the same boring strip malls and block buildings as most cities in the country. But it also has some interesting districts, like Bricktown, whose scenic riverside promenade is filled with restaurants and shops.
But apparently, this is not what people in Oklahoma want. A city view here can cost a shocking 42.2 percent drop in your home value. When buying in the state, either make sure that the area you're investing in is visually appealing or seek out nature. In contrast, homes with a nature view in Oklahoma appreciated in value by 48.1 percent.
Homes in the Wichita Mountains — when they have modern amenities — can be a better investment, especially if you're interested in a vacation rental property.
Population: 9.974 million
Largest city: Detroit
Average home value: $225,324
City view devaluation: 55.3%
Cost of a City View in Michigan
Detroit was once one of the great American cities. And while it seems like it's finally getting its footing back, people in Michigan don't want much to do with its skyline. Well, at least not unless it's in Downtown Detroit, where according to Realtor, the average home value is around $600,000.
In other areas of the state, a city view can make your property lose as much as 55.3 percent of its value. That's a scary number. Conversely, a water view will increase the desirability of your investment by 88 percent.
So either invest in the water views of Downtown Detroit or look for lakefront places. That shouldn't be too hard in a state with coastlines along Lake Erie, Lake Michigan, Lake Huron and Lake Superior.
True Cost of a City View in the U.S.
A city view is not always bad. In fact, it's a positive thing in 21 states. Check out this graph to see where you should look for a city view and where you should avoid it.