A new study by economists from the University of Illinois and the University of Michigan, highlighted in this article from CityLab, looks into the factors that determine how much Americans are willing to pay to live in a more desirable area, and which amenities matter to them the most.
Location, location, location. When choosing where to live, we all make choices and tradeoffs between housing costs, commutes, and the kinds of amenities we need and want from communities – from better schools, safer streets, and warmer climates, to access to mountains or waterfronts, restaurants, and bars.
Just how much are we willing to pay for a better quality of life, and for the amenities and public services we believe will bring us that?
A new study published in the Journal of Urban Economics looked at more than 2,000 neighborhoods across the country, using people’s willingness to pay to live in specific areas as a measure of the quality of life there.
Using detailed data, the economists determined the real take-home pay in different areas across the country (taking wages, housing, and commuting costs into account), and then how much of that pay people are willing to sacrifice to live in the best neighborhoods and to access the best possible services and amenities.
The most desirable areas include communities along the West Coast, the Boston-Washington corridor, in coastal Florida, and in Colorado. East Oahu, Hawaii, tops the list, according to the economists’ analysis; households sacrifice 25% more than the average American to live there. California’s Marin, San Mateo, and San Francisco are not far beyond. Santa Cruz, San Jose, and Oakland do well, as do parts of Colorado and Washington State.
To determine what makes places more or less desirable, and which amenities matter the most, the study sorted out how much value households place on schools, crime, and climate, and on access to waterfronts and urban amenities.
