Locked down by pandemic, buyers want bigger homes for work, play, and learning
Suburban real estate is rebounding nationwide, much of it catalyzed by the work and lifestyle changes brought on by the pandemic. According to a recent article in the Wall Street Journal, a growing number of urban hipsters are trading in cosmopolitan chic for sprawling green lawns and cul-de-sacs. The key factor driving the exodus is space—and plenty of it.
A survey by the national brokerage, Redfin, found that almost a quarter of current home buyers want more space to work from home; and space to play in big backyards and surrounding open spaces. And about 7% of them want to create classrooms for their distance-learning kids.
Will the trend survive a vaccine for COVID-19? Although most workers will likely return to their offices when the pandemic ends, a sizeable number will continue working fulltime from home. So, it’s likely that homes with amenities like broadband Internet, spare bedrooms that can serve as offices, and lots of peaceful outdoor space will continue to be desirable.
Unlike the housing boom of the early 2000s, this market is not driven by investors looking for a quick flip and a high return. For today’s buyers, the ROI is the “service” provided by the space itself: workspace, play space, learning space, relaxation and recreation space. Although those qualities don’t have hard monetary value, the quest for them, along with low interest rates, is driving prices upward. Redfin reports that nationally, the median home price in late July increased +11% over the previous year. In Minnesota, the median was up +7.7% over last July.
Longer term, it’s hard to know if the trend will fuel suburban expansion or inspire more innovative uses of space in urban design. However, things play out, it is a transformational movement that is already redefining the spaces we live in.
For more information, please visit https://www.redfin.com/blog/q2-2020-housing-migration-trends/