It Turns Out the Suburban Housing Boom Is Coming Mainly From THIS Market
When industries around the world first started being affected by the COVID-19 pandemic, the stability of the housing market surprised many. Though landlords and luxury real estate investors were affected, single-family homes have actually been selling at record highs lately. An analysis of this real estate trend reveals the reason the suburban housing market is doing so well.
The Majority of New Suburban Buyers Are Urban Exiles
By examining the demographics of home purchasers recently, it is possible to notice a growing trend. Many of the people buying homes in the suburbs are moving there from nearby urban centers. These people were initially renters or homeowners in the city, but during COVID, they have decided to relocate to the suburbs.
This new interest in suburban housing is reflected in statistics on recent home sales. More and more homes are being sold in suburban areas, while few homes in urban areas are selling. For example, in San Francisco last month, the number of homes sold only increased by 1.4 percent, while they rose 36 percent in nearby Marin County suburbs.
Fears About Communal Living Are Making Single-Family Homes More Appealing
A lot of the people leaving city living cite concerns about being in such a crowded environment. Multi-family homes like condos, townhomes, and apartments have been heavily affected by the COVID outbreaks. Building gyms, pools, and patios are often closed, and people have to worry about getting infected in common spaces. This extends to many other parts of city living, like cramming into crowded restaurants or using public transportation.
Suburban living is often set up in a way that insulates people from each other. It is easy to drive cars everywhere, and a person's nearest neighbor can be acres away. During a time when everyone is so concerned about infection and contagion, this can be quite reassuring. Instead of paying for amenities that are shut down due to COVID now, homeowners can have their own private pools and other perks at a reasonable cost.
Remote Work Is Allowing Many to Move to Lower Cost-of-Living Places
For many city dwellers, the biggest reason that they are looking at suburban housing is the lower costs of living and larger spaces available. Thanks to remote work, a lot of citydwellers no longer have to be located near their job. Being able to move to the suburbs and get more bang for their buck is very appealing. The ability to get a city-sized paycheck while living in a far more affordable suburb makes it easy to stay.
With parks, night clubs, concert halls, and other perks of city living closed, many people are starting to rethink the idea of living in a tiny city space. COVID is making many people stay at home the majority of their time, so homeowners are reconsidering their needs. Homeowners in 2020 are starting to prioritize the home itself instead of the nearby entertainment options. The larger homes and yards in suburban areas offer more potential for enjoying time at home. Extra bedrooms make it easy to have a home office space without being crowded, while large yards give people time to enjoy the summer sun.
Housing Prices Reflect the Change in Demand
These shifting housing priorities are changing the housing market greatly. The rising demand for suburban housing is causing higher prices. For example, house prices in Boston rose 2.1 percent last month, while they rose by 5 percent in the suburbs. This trend has been noticed in other areas like Washington, where suburban house prices rose by 4.4 percent.
These increasing prices are good news for suburban homeowners worried about paying their mortgage during the crisis. However, it does indicate that potential homebuyers should be cautious. Those looking to get deals and take advantage of record low mortgage rates may need to start house hunting as soon as possible. Experts caution against getting caught up in all the excitement and entering huge bidding wars though. Sudden, sky-high prices often indicate a bubble, and these uncertain times might be a risky time for speculating in real estate.
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