Is the Health Crisis Driving Buyers Out of Urban Areas?
The pandemic has caused many consumers to re-evaluate what makes the “perfect home.” Families are reconsidering the locations and layouts of their existing homes. The appeal of city living is giving way to suburban or rural areas, and open floor plans are losing favor as people seek more privacy while working from home.
_news.com_ released a report showing year-over-year percentage increases in property views:
- Urban – 7%
- Suburban – 13%
- Rural – 16%
Javier Vivas, Director of Economic Research for realtor.com, explained:
“This migration to the suburbs is not a new trend, but it has become more pronounced. After several months of shelter-in-place orders, the desire to have more space and the potential for more people to work remotely are likely two of the factors contributing to the popularity of the burbs.”
_Realtor Magazine_ also reported that city residents are most likely to consider moving:
“Nearly 30% of respondents living in a high-density urban area say that the pandemic is prompting them to want to move by the end of the year. This is more than double the rate of those living in rural parts of the country, where residents are much more likely to stay put rather than to relocate.”
New Construction Also Seeing a Surge in Views
The pandemic is influencing how consumers view home layouts, and builders are adapting accordingly. According to a recent press release by Zillow:
- Buyers are identifying which features work and don’t work as they spend more time at home.
- Open-concept floor plans are decreasing in popularity as privacy becomes more important.
- New construction, which allows personalization, saw listing page views increase by 73% over last May.
The Virus is Even Impacting the Luxury Second-Home Market
COVID-19 is affecting the luxury market as well. Danielle Hale, Chief Economist for realtor.com, reported:
“Stay-at-home orders and social distancing have put a new value on extra space. Luxury buyers are showing renewed interest in second homes within driving distance from their primary residence. Views of luxury properties increased 56% in The Hamptons, 28% in Palm Springs, and 24% in Greenwich compared to January trends.”
Bottom Line
Many Americans are considering leaving urban areas. Some moves will be permanent, while others may be temporary, such as second-home getaways. Real estate professionals are ready to help with any relocation or purchase needs.
