According to recent data from Zillow, there is a current surge in urban high-end listings in some larger metro areas. The month-over-month increase in these homes going on the market indicates that more urban homeowners may be ready to make a move out of the city, particularly at the upper end of the market.
It’s no surprise given the ongoing health crisis. More space, proximity to fewer people, and a desire to own at a more affordable price point are highly desirable features in this new era.
The National Association of Home Builders (NAHB) confirms the surge: “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.”
The question is, will it continue after COVID-19? Some people, including Lawrence Yun, Chief Economist at the National Association of REALTORS®(NAR®), think the possibility is there, but it is still quite early to tell for sure. Yun notes, “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 energy behind this trend has been accelerated by the current health crisis, monitoring the momentum over time is critically important. Businesses are discovering new and innovative ways to function in remote environments, so the shift has the potential to stick. Much like the economic recovery, however, the long-term impact may hinge largely on the health situation throughout this country. It may just be a temporary swing in a new direction until Americans once again feel a sense of comfort in the cities they’ve grown to love.