Houses vs Apartments: What Determines Their Comparative Values?

You might be looking for a buy to rent property, or you may just be looking for a new place to call home. You’ve probably already decided if you want an apartment or a house! But if you’re still in the earlier stages of such a decision, then you may still be a little stuck. A house may seem like way too much money when compared to an apartment… but what if it offers more value for money?

The question of value for money when it comes to houses vs apartments is an interesting one - and we’re going to explore a few of the unique aspects of each that make a difference in this field.

City living

City living is more affordable if you’re actually in the city. Those who want an apartment instead of a house will usually find better deals in the city because there’s much more supply of apartments than there are houses. If you need to be in the city on a regular basis, then a house somewhere outside the city could end up costing you more in the long-term due to travel expenses. 

However, you need to remember that price fluctuations can hit cities harder than suburbs. You should research recent property life cycles in the area of the city you’re interested in. In either case, you should ensure you consider city living or suburban living when you use a mortgage calculator to assess what you can afford. You may find that you’re able to afford a house in the city, as long as it’s not in too affluent a neighborhood. Los Angeles is a good example of a city that has a large supply of houses - but some of those houses are in Beverly Hills!

Neighbors

A lot of people forget that noisy disruptive neighbors can cause quite a drop in property value!, The effects of this will be even worse if neighbors are unable to keep their children quiet or have very loud pets, because people tend to recognize that such noise levels are unlikely to change via kind requests or even threat of legal action.

How close you are to the neighbors, and how likely interacting with them will be, will have a bigger impact on the property value than you may have originally imagined. When it comes to independence from neighbors, detached houses are much more trustworthy!. Noisy neighbors are less likely to affect the value of a detached house than noisy neighbors in an apartment complex, where you may get a lot of noise from the right, the left, and above and below you! 

Safety

Apartments usually offer a stronger sense of security than a house - criminals are simply a lot less likely to break into apartments. Homes are an easier prospect because they can be accessed directly from the outside through at least three of its sides. Depending on the neighbourhood, this may cause huge differences in the value of these properties.

Let’s say you know of a desirable area of the city that nevertheless is victim to occasional crime. You may consider dismissing the area completely - but apartments and houses aren’t at equal risk of that crime, so there won’t be equal decreases in value.