Baby Tax: Understanding The Added Expense of a Family Home

A first home buying search can be a very exciting time, as a family searches far and wide for the perfect place for their shared life to unfold. However, many new parents are surprised to learn that the best homes for raising a family can be significantly more expensive than others, even those with very similar profiles, and the amenities these homes offer are often subtle, yet indispensable to those raising young families.

Preferable Location

As structures, houses will always deteriorate over time and will inevitably lose their value as the years pass. On the other hand, you can find real estate for sale only if someone sells that which they already own, and so the land that a home is built on is actually the most valuable part of the property.

Land in a developing community, such as in a neighborhood tabbed for construction of a new school, entertainment venue or retail space, is especially desirable to families and fetches a higher price on the open market. A small house in a vibrant and developing neighborhood can be worth much more than a larger home in a less active area because of the potential future value of the neighborhood and the land within it.

Another aspect to an ideal family location is the home’s position within a neighborhood. Obviously, houses closer to a school, hospitals or major shopping areas will be more expensive, but another positional factor is the house’s orientation in relation to roadways. Homes set on low-traffic, one-way, and cul-de-sac streets are perceived as safer for children and command more value.

Neighborhood Culture

Because home prices tend to go down as the average age of the community’s residents go up, families also typically pay a premium to be amongst other families. This trade-off gives them greater integration to the community in exchange for the higher average cost of these homes, offering more opportunities to interact with neighborhood parents as well as a multitude of potential new friends for their children. Living in a family-focused neighborhood can also provide more convenient access to local family amenities, as businesses carefully plan their locations to address their core demographic.

An ideal first home for a new family can be difficult to find, and slightly more expensive than similar homes when you find it. Nevertheless, the package of benefits such houses typically deliver to those that call them home makes the investment more than worthwhile.