To say that COVID-19 has wrought some serious challenges and changes to our lives would be a huge understatement. Millions of people are unemployed because their jobs either cut their hours or closed for public safety. Now more than ever in recent history, people are worried about losing their homes, putting food on the table, and so much more.
People who have the ability to relocate are moving away from big, superstar cities by the thousands and it’s not necessarily a surprise. To be honest, the future of the real estate market in those cities is up in the air… But we have top agent insights that we think will give us a clearer picture of what’s to come in a post-COVID world.
Superstar cities lose some allure
What are the key factors people look at when they want to live in a superstar city? They want an abundance of culture, a thriving social life, good school systems, and plenty of opportunities for job growth. Cities like New York City, San Francisco, and Chicago have been hit really hard with business closures because of the pandemic. As a result of this, they’ve lost some of their allure.
There aren’t as many job opportunities. Tens of thousands of restaurants, shops, and services have closed for good without the promise of returning. Schools have been closed or functioning on an altered schedule. Superstar cities just aren’t the same anymore.
Remote work lead to migration
While companies who have the ability to let their employees work remotely are toying with the idea of making it a permanent practice, people are taking this opportunity to pack their bags and relocate. An astounding number of real estate agents (96%!) who live in cities with a population ranging between 500,000 to less than 1 million are seeing an increase in buyer demand.
People are moving from those superstar cities to areas where the population isn’t so dense and there are signs of growth. Heck, 98.9% of real estate agents say suburban and rural towns are booming right now because there’s more space, lower housing prices, and the economy is improving.
Interest in condo life is gaining traction
If you’ve lived in an apartment, you already have an idea of what condo life is like. Despite its downfalls (sharing walls with neighbors, small to non-existent outdoor space, cramped living spaces, and fees out the wazoo), 55.5% of real estate agents report the demand for condos in their area is on the rise.
Goodbye cold and rainy – hello warm and sunny!
It’s not uncommon for homeowners who are considering relocating to use a home affordability calculator to figure out how much house they can buy in their desired area. It’s true that superstar cities like San Francisco and Los Angeles have beautiful weather the majority of the year, and 62% of real estate agents in those cities are seeing an increased buyer activity. But, they’re also incredibly expensive.
For those who cannot afford to buy multi-million dollar homes or pay thousands per month on rent, they’re packing their bags and moving from colder climates down south where it’s nice and warm year-round (providing there isn’t a freak snowstorm like the one in Texas that killed 58 people). Not only is the weather more amiable, but housing is also usually much more affordable and their money goes a whole lot further than in superstar cities. It doesn’t matter if you live in a superstar city or if you want to move there, it’s important to do your research first. Buying property is a huge investment and you need to make sure the area isn’t going to go down the tubes like Detroit circa 2013. Like it or not, your future relies heavily on the future of the area you live in, so choose wisely.