How To Understand the Value Jump Between Nearby Streets: Ask a Wahi REALTOR®

When experts say real estate is all about location, location, location they don’t just mean the neighbourhood. Home values can differ greatly from street to street. Here’s why.

By Josh Sherman | 2 minute read

The typical price of a home can vary considerably from one street to another. In our latest edition of the ongoing Ask a Wahi REALTOR® series, we help home buyers understand these kinds of value jumps between nearby streets. Here are five things that can result in hyper-local price differences in home prices.

1. Surrounding environment

Similar to how the many unique characteristics of a home can influence its value, the attributes within the immediate vicinity of a property can, too. Two parallel residential side streets could have different price points because one backs onto a noisy highway while the other lets off onto a public park or golf course. Direct waterfront exposure can also give homes a value boost.

2. School zones 

For homebuyers with young children, living in the catchment area of a top-rated school is a common priority. While prices vary — in the Greater Toronto Area, the median price of a home in a top-rated school zone ranges from $570,000 up to $3,200,000, depending on the neighbourhood — these areas typically command a premium. Note that school zones, or catchment areas, may not match neighbourhood boundaries. Homebuyers may encounter two nearby streets, each within an entirely different catchment area.

3. Build quality 

Sometimes, homes on one street may share specific characteristics compared to another nearby thoroughfare. These differences could even arise on the same street, with one side having higher-quality finishes, larger lots, or any number of other upgrades depending on when they were constructed. “In relatively new suburbs, homes on one side of a major street might be newer and have more-desirable finishes than on the other side, leading to more demand — and higher prices,” says Alkok.

4. Bylaws and borders

Other scenarios that could result in a value jump between homes on nearby streets involve zoning or other jurisdictional borders. For instance, a border between two municipalities could stand between two homes. One municipality may have looser zoning rules that allow for redevelopment. Depending on the property, this could increase values. Property taxes, which also impact home values (lower taxes reduce ownership costs and can be a positive for values), may also differ between two neighbourhood municipalities.

5. Prestige 

Some addresses carry more cachet with homebuyers than others. Take the Bridle Path, in Toronto. This particular residential street is known as Millionaires’ Row — and for good reason. From the late artist formerly known as prince to 6ix God Drake, celebrities have long chosen to reside within the exclusive enclave.