Economics: Today and Tomorrow © 2012

"Location, Location, Location"

Introduction
You may have heard the saying that the three most important factors affecting the price of real estate are location, location, and location. When one considers that the purchase of a home is the greatest investment most people will make in their lifetimes, location takes on even more importance. To illustrate how much the cost of living among locations can vary, use the Moving.com Web site to compare housing costs in your city to other cities in the United States.

Destination Title: Moving.com

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Directions
Start at the Moving.com Web site.

• Click on "Learn & Explore" and then "City comparisons."
• Select your state and the state you wish to compare. Then select the city nearest your area and a comparison city. Click on the "Compare Button."
• Read through the comparison, writing down the numbers for the following statistics: average household expenditure, white collar jobs, blue collar jobs, median household income, average home sale price, and sales tax rate.

1			Compare the costs of living in each of the two cities. How does your city compare to the other city? The national average for the cost of living is a score of 100. How does your city compare to the national average?
2			List the home purchase costs for a home in each of the cities. Which city has the highest home costs? What reasons can you give for the higher costs?
3			Look at the sales tax rates in each of the cities. How do they compare, and how might they influence a person's choice of relocating into that area?
4			Compare the percentages of white and blue collar employment in both cities. What do these figures tell you about people who may be relocating and seeking a job in those cities?
5			Other than the price of housing, factors such as air pollution, crime index, graduation rate, weather, and state and local income taxes can contribute to a city's quality of life rating. Looking at all of the statistics offered, choose the one city that you feel provides the best quality of life for its residents. Prepare a review of the city you would like to live in, citing all the factors that you feel contribute to the desirability of your location. Consider any trade-offs that residents living there make.