Monday, July 19, 2010

Do you Live in a Home or a House?

In the following lists, you can question the results but the premise in which the lists were created is the important component distinguishing between winners and losers. As a previous Judge for a NAHB and Better Homes and Garden national home/project design competition, I remember the winner of the most energy efficient home was awarded to a builder of a $1,500,000 home. No wonder this home won this category – the builder could afford to implement cutting edge energy solutions without regard to the other two components of sustainability – social goals and economic viability. The result however was a marketing advantage for the builder since they were immediately considered a national leader in residential energy conservation design and construction.

Magazines publish “Top Ten” lists for various marketing purposes and the results always seem to be questioned. However, the criteria established for the competition is important to note and compare against a true sustainable community.



Money Magazine’s List of America’s Best Small Cities           BizJournals Top Smaller Cities to Live In

Criteria:         Jobs                                                                 Criteria:       Shorter commutes
                    Schools                                                                                Fresher air
                    Safe streets                                                                          Safer streets
                    Low crime                                                                           Stronger sense of community
                    Lots to do                                                                           Quality of Life Score

Top 5-Cities           Avg. Home Price                            Top 5-Cities             Avg. Commute (minutes)

1. Eden Prairie, MN         $430K                                  Torrington, Conn                  25.2

2. Columbia, MD             $487K                                  Bozeman, Mont                    20.6

3. Newton, MA                $989K                                 Lexington Park, MD             26.6

4. Bellevue, WA               $801K                                 Lebanon, NH                       20.3

5. McKinney, TX             $267K                                 Helena, Mont                        16.3


Ask the question: are the winners a great place to raise a family?

In my opinion, a significant reason for our housing problems is the primary change from buying a home and raising a family to buying a house as an investment. We have been indoctrinated by lenders, TV shows on how to “flip” houses to financial planners telling us that a house is not a home but a way to earn money on your investment.

It is time for us to rekindle our reasons to buy a home.

3 comments:

Ron said...

Bellevue number four! Yes, those were the days when a house was a home first and everything else was a distant second,

Peter J said...

I am looking for a home right now in Washington State on the "East Side." That is, the east side of Lake Washington (where Bellevue is located).

But David's insight is spot on: I should be looking for a home instead of a house. My wife and I talk about that all the time. However, its a constant battle for us to maintain that perspective given the current economy: its a buyer's market. Its our first house, our child is only 9 months old, should't we make an investment now and buy a "home" later?

Peter J said...

I am looking for a home right now in Washington State on the "East Side." That is, the east side of Lake Washington (where Bellevue is located).

But David's insight is spot on: I should be looking for a home instead of a house. My wife and I talk about that all the time. However, its a constant battle for us to maintain that perspective given the current economy: its a buyer's market. Its our first house, our child is only 9 months old, should't we make an investment now and buy a "home" later?