"Location, location, location.” That’s the mantra of the real estate profession. It sounds simple enough, but the question is what is one looking for to identify a desirable location? Now data analytics can provide a clear answer for at least one type of market: those who seek homes within commuting distance of jobs that provide a living wage.
Opportunity Score is a data-driven tool built by the real estate company Redfin in partnership with the White House Opportunity Project. It identifies which residential areas offer affordable housing and are within a 30 minute carless commute of jobs that pay at least $40K a year.
In its blog, Redfin explained what went into powering Opportunity Score....
Considering a move, or just curious about how your own city ranks? You can plug it in to get the score. Just don’t expect to find a perfect 100. As Redfin explains, a city can start out with the 100 because of the number of jobs that meet the criteria, but then be knocked down due to the home prices. There’s also quite a difference between scores for cities in general and addresses in particular.
The highest score it assigned to a city is a 70, and that went to San Jose where 78% of jobs meet the criteria. But that’s not the only thing that counts. The same job percentage was found in Detroit, the city with the lowest score -- just 3%. Individual addresses around Detroit, though can reflect very high scores, with, for example, one address on Harrison Street earning the description “Job Seeker's Paradise” with a score of 94.
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