July 3, 2015 by Jeff Lowen
Broadband has become a must-have. In fact, the speed of Internet service is even having an influence on American’s biggest purchase: Their homes, The Wall Street Journal reports.
Fiber-optic connections — the fastest type of high speed Internet available — can add over 3% to the value of a home. That equates to what a fireplace would add in value or half the value of a bathroom, according to a newly released study by researchers at the University of Colorado and Carnegie Mellon University.
Researchers compared more than 525,000 home sales between 2011 and 2013 against government data on the type of Internet access available. The impact with Internet speeds and home sales often are found to be most significant in rural areas where Internet speeds tend to show more fluctuations in speed.
Phone lines can deliver DSL service, generally slower than 10 megabits a second; satellite service is typically even slower; and fiber and some cable can deliver speeds of up to 1,000 megabits a second, The Wall Street Journal notes.
A 2014 study by the University of Wisconsin at Whitewater also found that access to the Internet could increase a home’s value. That study found that it could add $11,815 to the value of a $439,000 vacation home in Door County, Wis.
Source: “How Fast Internet Affects Home Prices,” The Wall Street Journal
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