Will We See a Surge of Homebuyers Moving to the Suburbs?
As remote work continues and Americans weigh the risks of densely populated areas, more people may consider leaving bigger cities. Spending extra time at home and seeking more indoor and outdoor space is sparking interest in suburban living. Early data shows an initial trend from urban to suburban communities—but will it continue?
According to Zillow, there is a surge in high-end urban listings in some larger metro areas. The month-over-month increase indicates that urban homeowners may be ready to move, especially at the upper end of the market:
Why Are People Starting to Move out Of Larger Cities?
The ongoing health crisis is influencing this shift. A July survey from HomeLight notes the top reasons people are moving today:
- More interior space
- Desire to own
- Move from city to suburbs
- More outdoor space
John Burns Consulting notes:
“The trend is accelerating faster than anyone could have predicted. The need for more space is driving suburban migration.”
Sheryl Palmer, CEO of Taylor Morrison, adds:
“Most recently, we’re really seeing a pickup in folks saying they want more rural or suburban locations. Initially, there was a lot of talk about that, but it’s really coming through our buyers today.”
The National Association of Home Builders (NAHB) also reports:
“New home demand is improving in lower density markets, including small metro areas, rural markets, and large metro exurbs, as people seek out larger homes and anticipate more flexibility for telework in the years ahead. Flight to the suburbs is real.”
Will the shift pick up speed and continue?
The question remains whether suburban and rural interest will continue. Lawrence Yun, Chief Economist at the National Association of Realtors, believes the possibility exists but cautions that it’s still early:
“Homebuyers considering a move to the suburbs is a growing possibility after a decade of urban downtown revival…Greater work-from-home options and flexibility will likely remain beyond the virus and any forthcoming vaccine.”
While much of the trend has been accelerated by the health crisis, businesses adapting to remote work may help this shift stick. Long-term impact will likely depend on the overall health situation in the country.
Bottom Line
Early data shows a shift from urban to suburban markets, but monitoring this trend will help determine if it is temporary or a lasting change in housing preferences.
