Where should I live? 12 important factors to consider

Imagine waking up every day in a neighborhood that feels just right, where the environment perfectly reflects your lifestyle, the commute is manageable, and every corner of your home brings you joy. If you've been asking yourself, “Where should I live?” You’ve come to the right place.

We'll walk you through 12 key factors to consider when choosing your next destination and how to decide where to buy a house. From evaluating neighborhoods to understanding market trends, we'll help you find the perfect place to call home.

Where should I live?

Before you start considering different places, you need to figure out what you want.

Think about your life goals, your career and what you want from a community.

It’s also a good idea to consider your stage of life. Are you looking for a bustling city where it’s easy to meet people? Are you raising a family and need a supportive childcare network? Are you retiring soon and looking for a quiet place to settle down?

Your personality, preferences and phase of life can shape your priorities and influence where you decide to live.

If you're an introvert who craves a slower pace of life, moving to a big city like San Francisco or New York City may not suit your lifestyle preference. If you’re not a fan of heat, you should probably reconsider if you’re thinking of moving to the American South. A community’s pace of life and climate may sound like obvious factors to consider, but prioritizing these personal factors can help narrow your search before you dive into external factors.

12 factors to consider when choosing a house location

There are many factors to think about when deciding where to live. While each factor may not apply to your situation or some are higher priorities than others, considering all of them can help shape your search.

1. Your housing budget

Whether you want to buy a house or rent a place to live, you’ll need to think about what you can afford each month for mortgage or rent.

Perform basic calculations with different budget amounts to help estimate what you can and can’t afford.

When determining your budget, prioritizing your quality of life can help ensure you’ll live a happy and healthy life.

2. Cost of living

Your housing budget is the foundation for understanding your overall cost of living. A housing budget typically includes how much money you spend to cover basic living expenses, such as groceries, childcare, entertainment, gym memberships and dining out.

According to the latest statistics from the Bureau of Labor, the average American household spends around $73,000 a year on bills and expenses. Cost of living is an important consideration when determining how much home you can afford and the area that works best with your budget.

For example, if you’re early in your career, a thriving city with a high cost of living, like San Francisco or New York City, might be worth the long-term career gains.

For some, having more disposable income to travel, invest in hobbies or build a nest egg for real estate investments matters more than living in a thriving job market.

Use a cost of living calculator to help determine how much you’ll need to make to live in a certain area and what you can expect to pay for basic expenses.

3. Local real estate market

The local real estate market will directly impact your cost of living and monthly housing budget.

Before you start your house hunt, determine whether you’re buying in a buyer’s or seller’s market. The market you’re in can affect your negotiating power.

In a buyer’s market, there are more available properties than buyers. You’ll have more homes to choose from and likely more leverage to negotiate a better deal.

The hallmark of a seller’s market is low inventory. The seller has more leverage during negotiations because there are more buyers on the market than available homes for sale.

4. Job opportunities

How does the job market look where you want to move? Do the available jobs match your skill set? Is the job market highly competitive?

Across America, you’ll find a diverse network of industry hubs. For instance, California is well known for its thriving tech industry. If you’re committed to pursuing a job in a specific industry, that could be a factor that determines where you live.

You should also look at average salaries in the area to make sure you’ll be able to maintain your quality of life. If you can snag a remote job, you may be able to earn more than local wages and pursue a career that doesn’t exist in the area.

If you’re thinking about relocating to a new state and keeping your current job, check with your company to see if it’s allowed. Different states have different tax rules. Your company may not operate where you want to move, so keeping your job and relocating may not be possible.

5. Big city vs. small town

You’ll also need to decide what environment you want to live in.

A big city can offer a variety of places to live, restaurants, arts and culture, but it all likely comes with a hefty price tag. A small town may offer wide open spaces and a lower cost of living, but you’ll likely have fewer amenities and activities to enjoy. Each environment offers benefits and drawbacks you’ll need to consider.

The suburbs may be a well-rounded compromise. You generally have more space than you would in a city and can enjoy all the amenities you’d typically find in a city. You may even have a slightly lower cost of living, too.

6. Outdoor offerings

Don’t forget to factor the great outdoors into your decision-making process if you’re the outdoorsy type.

Do you need a huge piece of property for outdoor activities? Would you prefer to live in a city with plenty of parks? If you like to hunt, fish, swim or play sports, looking for places that give you the room to do that should be high on your priority list.

Pets and kids will also play into where you decide to live. Think about what they might need. Playgrounds or dog parks may be an important factor for you. You may need a yard to give your dog a dedicated space for bathroom breaks or a yard so your kids can safely play outside.

7. Climate and weather

Because weather affects all aspects of your life, it’s important to look at the weather patterns in your desired area. Is there too much rain for you? Would persistent droughts affect your daily lifestyle or hobbies?

Flooding may be a real possibility if the area is below sea level or next to a large body of water.

If you’re seriously considering buying a house in a flood zone, ask neighbors or a real estate agent about the potential risks and damages, and make sure your new home insurance covers flooding.

8. Crime rates

Do some research on crime rates in your desired area. Crime rates can vary significantly, even block by block in the same town or between neighboring towns.

Crime rates can also affect other costs, such as insurance rates and the cost of homes, so it’s a good idea to look into some of the safest cities in the U.S.

9. Education systems

If you have children or plan on having them, schools will likely be an important factor in your search for the right place to live.

Good schools are like a magnet. They draw in many families who want to enroll their children in a competitive school. You should talk to parents with kids in the district to get insight into what the schools are like.

Even if you don’t have kids, great schools are known to raise property values.

10. Public transportation

How walkable is your potential new neighborhood? Public transportation will likely be on your radar if you don’t own a car or plan on owning one.

While many major metro areas can boast thriving public transportation systems, extensive train systems are rare across most of the country. Buses and rideshares are other popular transportation options.

Whether you plan on driving or taking public transportation, research the lengths and costs of commuting. You should also factor weather into your commute – driving during snowy months usually takes much longer.

11. Proximity to family and friends

Another factor to consider is how close you want to be to friends and family. You may rely on them for child care or want to be close enough to visit whenever you want.

Ultimately, deciding to live near friends or family can help narrow your search.

12. Your future needs

Thinking about the future is something else to prioritize as you decide where to move.

Are you planning on living in this new location for only a few years or the foreseeable future? Your future plans can affect what type of mortgage you get and the cost of living you can comfortably handle.

If you’re beginning to grow your family, does the area have good child care? Can you afford a home big enough to accommodate your expanding family?

Even if the answer to all of these questions is, “I don’t know,” it’s still something to keep in mind as you search for a place to live.

How a real estate agent can help you find a place to live

If you have your preference narrowed down to a particular town or city but need help determining where in that town or city you should live, a skilled real estate agent can help you find the right neighborhood for your needs.

An agent with deep knowledge of an area and its real estate market can benefit you immensely. They can tell you every detail about each neighborhood and will personalize their neighborhood and house selections based on the factors that will likely affect your decision.

The bottom line: Choosing Where To Live Can Take Time

Are you asking yourself, “Where should I buy a house?” You likely don’t have an answer yet because you realize that buying a home is a huge decision with many moving parts.

Weighing your needs and wants should help you find the answer and the community and home you want to live in. Consider the pros and cons of where you live right now. Note what you like and dislike and use your answers to help you decide where to buy a house.

Visit the new neighborhood you're considering at different times of the day and talk to locals about their experience in the community. And to level up your search, consider enlisting the help of a qualified real estate agent.

Feel like you’re ready for the next step? Begin the approval process today with Rocket Mortgage^®.