OtterKnow Kids Encyclopedia

There are two main ways families get a place to live. Some families buy a home — they pay a lot of money (sometimes with help from a bank) and the home becomes theirs. Other families rent a home — they pay money every month to a landlord, the person who owns the building.

The land under a building also has a value all on its own. Even if an old building fell down, the spot of land where it stood in a popular neighborhood would still be worth a lot — because everyone wants to be in that neighborhood!

Sometimes a neighborhood that was quiet and affordable becomes more and more popular. Maybe a new park opens, or new shops move in, or more jobs come to the area. When that happens, more families want to live there, and prices can start to rise.

This can be exciting — new places to go, neighbors moving in! But it can also be hard for families who already live there, because their rent might go up and they might have to move somewhere farther away. Cities are always changing, and where people can afford to live changes too.

• The most expensive cities to live in the United States include San Francisco, New York City, and Honolulu.
• A small apartment in San Francisco can cost more each month than a whole house in some other states!
• The land under a single city block in a busy downtown can be worth millions of dollars.
• Long ago, before there were many buildings, land in cities cost much less — it only got expensive as more people moved in.