Real Estate Suburban Migration
Real estate suburban migration has been a hot topic throughout the real estate industry nationwide.
This year has been difficult for everyone and many people are looking for a new home for reasons like a change of scenery, the relative peace and quiet of the suburbs, or to chase a new job. With that comes new trends in home buying and a shift in the home buying process.
What exactly is happening? A suburban migration. Here is what you need to know about suburban migration and how it might affect your home search.
What is Real Estate Suburban Migration?
First, let us talk about what exactly ‘suburban migration’ is concerning real estate. Essentially, it is the trend of people choosing to purchase homes in suburban areas rather than urban areas toward the denser, livelier, central areas of a city.
This happens for many reasons—people wanting more space, big yards, less noise, etc. Though urban areas have trended more upward in recent years, especially with a younger demographic, suburban living continues to be the place most people choose to buy homes. Around 69% of Americans live outside the urban core of major cities.
How Has COVID-19 Affected Real Estate Suburban Migration?
The tumultuous events of 2020 have a lot of people looking to get away from the crowded cities and into more space out in the suburbs. A study done by Realtor.com has traffic to suburban listings up 13% this summer, nearly doubling the rate of urban listings.
Though we can’t know for sure, many experts guess that the year spent indoors, working from home, and without many of the amenities people enjoy has led to homebuyers seeking to leave the denser space in favor of suburbs with space and fresher air.
How Real Estate Suburban Migration Affects the Buying Process
You are probably asking: How does this affect my home search? Here are a few ways the market shift will most likely affect those looking for homes right now:
Be aware, it is a Seller’s Market: With demand for suburban homes rising, this has naturally created a seller’s market where demand is high, but supply is short. This will lead to increased prices and a much more competitive bidding process. Take this into consideration during each stage of your process from search to close.
Rents Are High: For those who are not looking to buy or maybe cannot afford it, renting is the other option though the suburban migration has also seen a price hike in rents for single-family homes.
People are Looking for ‘Fixer Uppers’: Though most are still wanting a ‘move-in ready’ home, the high demand for suburban homes in metro areas means people are willing to accept a home that needs work and will pay more for them.
If you are searching for a new home, be aware that, in suburban areas, you will face more competition than in recent years for the small supply of available homes. So, start your search early and be prepared for what these recent real estate trends might throw at you.
To learn more about real estate suburban migration, schedule an appointment with a real estate attorney at Lee Scott Perres, P.C.
