In a post pandemic world, people no longer needed to stay close to work to reach their offices, so they rethought their needs and demands for a house. More and more people wanted to get better houses at lower prices, and only suburban areas could offer such facilities.
Market Watch reports that a Realtor.com survey has found that more Americans are demanding suburban homes due to the pandemic. This survey says that home listings in suburban areas grew by more than 13% more than the growth in urban city areas. This helped the suburban areas reach a pre-pandemic demand for real estate and helped the market grow. But the same was not true for the urban market, which saw a slower demand rise with fewer people coming back to town for their jobs.
Reports by Reuters say that big giants like LinkedIn have allowed complete remote work options for their employees. Washington Post news reports have also pointed out that many Americans may never return to work, and Twitter is leading the way in promoting permanent remote work options. There are many other such reports all across America. These have become some of the reasons why the demand for suburban homes is rising. There are more. Read this article to learn all about them.
Though this change is harmful to the urban real estate market, this also leaves a major opportunity for the suburban real estate market. This market might be unexplored for many. Read on to find out how you can benefit from it and grow your business for the better.
Did the pandemic initiate new suburbanization?
The preference for housing locations and workplace locations have been decoupled over the course of the pandemic. Many people have realized that they can save up a lot of money if they start staying outside the cities. At the same time, they are saving a lot of money by not commuting to work every day. These new advances due to the pandemic have initiated new suburbanization.
Pew Research Centre survey mentions that after the pandemic, only 19% of the American population said they prefer living in urban areas. In contrast, 46% of them said that they want to move and relocate to suburban areas. This survey and research have pointed out that the pandemic and its ripple effects have made urban life much less attractive than before. People are now reevaluating their preferences and making permanent changes in their home preferences.
Why are more Americans moving to the suburbs?
Pew Research Centre studies have also found that more than 5.1 million people in the USA moved to the suburbs from other areas (cities and rural locations) in 2020. The numbers increased even further in 2021. What is causing this change? What is drawing people away from the cities? Let us find out more.
Lower home prices
The basic home prices in urban and city areas are always on the higher side. This is the most evident reason for more people shifting to suburban areas and lower home prices. More so if they are closer to office areas and other major amenities. This allows people to save money, and even long-term renters are now planning to buy homes with the saved-up funds.
The home prices in urban areas are so high that moving out of the city is the best option to buy a house for most new-age people.
Permanent remote work
Research says that more than 25-30 % of the American population is now permanently working from home. This has led to a lot of people sending most of their days inside their homes. This initiated the need for more space inside the house. But even small two-bedroom flats in cities are quite costly, and the rents are high.
Suburban migration has been happening for quite a few years now, but the pandemic gave this shift a major thrust. Big individual houses, with many more facilities, can come at lower prices in suburban areas than urban two-bedroom flats and remote workers took to this opportunity. Traditional careers and jobs took a backseat, and people changed their housing preferences along with the job changes.
More amenities at lower prices
Suburban houses offer much better amenities at lower prices, like backyards, garages, decks, pools, patios, personal driveways, etc. These types of homes have become a very popular choice for young and new families who want larger living spaces at lower costs.
Urban decay
Many people have long been bothered by city life's urban decay and bustle. Many have for long preferred the quiet and unbothered life of the suburbans but did not have the means to shift. The pandemic helped with remote work, and people relocated far away from the city hustle-bustle.
Better open space, closer to nature
The pandemic made most of the world understand the need to focus on health and personal well-being. Suburbs have simple natural amenities and help people concentrate much more on their personal well-being than cities. The suburbs offer much more green spaces than cityscapes can ever offer.
What is the current suburban housing price?
At the beginning of the pandemic and in general, the home prices in the suburban areas were always on the lower side. But due to the sudden rise in demand over the last two years, the housing prices in the suburbs are also steadily increasing. But market research says, since July 2021, all the suburban home prices are steadily increasing, much more than in the cities.
Opportunity for real estate businesses to grow
The sudden rising demand is suburban homes also leaves a housing void in the suburbs. This is a major opportunity lying around for real estate businesses looking to expand their businesses.
This market is rising steadily, and market reports say that this demand is here to stay. As a real estate business owner, you need to plan your strategy and leadership in a way that you can cater to this audience and tap into this market. This will speed up your growth and expand your footing in the market.
To get more such advice on the current real estate market, get in touch with our team.