The COVID-19 pandemic has created a housing shift in the American
housing market. Recent market trends
indicate that there are many Americans who are now trading their urban
lifestyle for suburban residential living. The restriction of movement and work
from home measures that were adopted by the government and the private sector
resulted in a new normal. Work dynamics changed completely and more people
started working remotely. As a result, the landscape of the U.S housing market
has changed and many individuals are now looking for bigger living areas. Suburban
residential real estate is becoming more attractive since suburban and rural
areas are the best places to get bigger living spaces.
Traditionally, homeownership has been viewed by many as a way of
building equity. Therefore, new home buyers who are buying their first or
second homes are preferring the suburbs where prices are affordable as opposed
to urban areas where property prices are usually high.
Since most of the urban lifestyles which appeal to the millennials have
been shut down or restricted, they are now adopting to the quiet environment
that the suburban areas offer which is ideal to the current environment of work
from home and restriction of movement.
As the demand for suburbs continues to gain momentum, industry experts
are predicting that this trend will continue to rise even in 2021 as the
economy recovers from the Coronavirus pandemic.
Another factor that is making suburbs more appealing to home buyers is
the historic low mortgage rates. Home prices in the rural and suburban areas
are mostly affected by the construction cost and geographical areas.
Over the last few months, homes in the rural and suburban areas have not
experienced a drastic increase in property prices as has been the case in the
urban cities due to high demand for homes and less inventory for listed homes.
When the COVID-19 crisis hit the economy, the cost of living in the city
also started to increase when many people lost their source of income.
Therefore, to caution themselves from such economic shock, many families
started to relocate to more affordable suburbs which offered them even bigger
living spaces for a smooth remote work environment.
We are now seeing a trend where many people are now reconsidering
shunning the high-rise urban rental lifestyle which mostly comes with shared
common spaces and amenities and opting for a single-family home that has a
bigger living space and a backyard. Going by the recent statistics, the demand
for suburbs will only increase as Americans continue to battle the second wave
For homebuyers who are interested in residential property investment, this
is the best time to buy small-town residential properties. The mortgage interest rates are low and
coupled with median home prices for homes in suburban and rural areas, this is
a good investment opportunity that guarantees a higher value compared to
investing in urban areas.
As more and more Americans continue to prioritize safety and the need
for more living space, a housing shift to suburban investment is expected to
continue rising in 2021.
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