What role does proximity play in the value of housing?

Proximity is a significant factor in determining the value of housing because it directly influences accessibility and convenience for residents. When homes are situated close to amenities such as parks, restaurants, shopping centers, and workplaces, they tend to be more desirable. People are often willing to pay a premium for this convenience, as living near essential services enhances their quality of life and can reduce travel time. As a result, homes in well-located areas with good accessibility to various amenities typically command higher prices in the real estate market. This reflects the principle of location theory in urban economics, where proximity to services and amenities is a key driver of housing demand and value.