How the Speed of Internet Connection Affects Home Prices

How the Speed of Internet Connection Affects Home Prices

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high-speed-internet Buyers looking for homes with high speed internet connectivity are on the rise, and for good reason. The internet has a massive impact on the way Americans live and work. Nowadays people can’t even imagine their existence without the internet. Over the years, the speed of your internet connection has assumed greater economic significance.

People consider several things before buying a home. Internet access is one of them. If your home does not have a high speed internet connection, your children may find it difficult to complete their school assignments. Because of these reasons, towns with limited access to high speed internet are falling behind economically.

Real estate brokers across the country claim that more and more buyers now avoid homes that do not have super-fast internet. Some studies have also shown that these buyers have an impact on the home prices in these regions. In fact, some buyers don’t even look at properties that do not have broadband connections. A recent study found that fiber optic connections can increase the value of a $1,75,000 home by $5,437. That is roughly the value of a fireplace.

The law requires telecom companies to make phone service available to all residences in their service area. This isn’t quite the case with high speed internet service providers. Decent internet speeds reach a few megabits per second. And then there is the high speed connection offered by Google – Google Fiber. There have been some rumors that it is soon coming to San Diego. If that happens, the real estate prices will soon soar.

In rural areas where internet speeds are particularly low, the impact is even more severe. Most homes in urban areas have superfast internet whereas in rural areas, less than half of the homes have high speed connectivity. According to the Federal Communications Commission, high speed connectivity means connections having a speed of 25 Mbps or more.

The growing popularity of the internet

There has been a dramatic increase in the number of Americans working from their home. High speed internet connectivity is a must for them. An unreliable internet connection can derail online businesses and destroy the credibility of freelancers. Satellite internet depends too much on the weather. If the weather is bad, this connection may go down. Because of these reasons, many homeowners have ditched their satellite internet connections.

People who live in areas without fast internet are already experiencing the negative impact of not having a broadband connection. To solve this problem, in many parts of the country local officials are building their own high speed internet networks. Towns where no such attempts are being made are no longer preferred by home buyers.

Times have changed. From being a nice-to-have amenity, internet has become a must-have over the years. Today it is right on par with electricity. People wouldn’t buy a home without electricity; now they wouldn’t buy one without internet either.

In San Diego, the situation is way better than some other cities. The majority of homes in San Diego have access to a wired connection with broadband speeds.

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