Homes Values Boosted By Local Businesses

Over the past 14 years, neighborhoods with thriving small businesses saw an increase in local homes values by 50 percent over non-small business areas or poorly performing small business areas, according to the American Express OPEN Independent Retail Index. The study found that communities with a robust small business scene were likely to see a 4 percent annual increase in homes prices, along with the infusion of 1,800 jobs into their communities.

Susan Sobbott, president of American Express OPEN, issued a statement that said: "This research validates what we know intuitively -- that small businesses are the lifeblood of our communities. There is concrete evidence that thriving independent neighborhoods lead to higher real estate values and more local jobs."

Not surprisingly, large urban areas like New York City, San Francisco, and Washington DC (and in my opinion, Bethesda real estate would be no different) fared the best. The most ideal businesses were restaurants and flower shops, rather than law offices or insurance agencies, when it came to influencing the values of homes in an area, the report also said. Unfortunately, what Amex found is that the majority of urban areas have seen the number of bars and restaurants decline by 7 percent and other small retailers by 11 percent over the last two decades. If that trend continues, we can expect the values of our homes to continue to fall. So report analysts say perhaps the best thing you can do for homes in your community is to go out and support those local entrepreneurs who add so much to your bottom line.

For more information on Bethesda MD real estate and other communities in and around the Washington DC marketplace, please visit http://dcrealestatemarketplace.com