Glossary of Terms
A bedroom community is a primarily residential town or suburb whose residents commonly commute to a nearby city or employment center for work. These communities typically have fewer major commercial or employment centers of their own and are closely connected to a larger regional economy.
Bedroom communities can have distinct real estate market characteristics because housing demand is influenced by employment, transportation and economic conditions in the nearby job center. Commute times, highway or rail access, school districts and local housing supply can all affect buyer demand and property values.
For appraisers, accurately defining the market area is important because properties only a few miles apart may have different commuting patterns and price levels. Lenders and other valuation users may also monitor employment, transportation access and regional economic conditions that could affect housing demand and property values.