According to Money, “before the pandemic, many Americans relished the perks of living in a big city. According to a 2016 Census Bureau report, about eight in 10 Americans lived in urban areas. But COVID-19 has some urbanites reevaluating where they want to live—and the type of homes they want to live in.” Realtor actually showed that 51% of property views by urban residents of America’s 100 largest metros went to suburban properties during the second quarter of this year, an all-time high since Realtor began tracking metro-level search data in 2017.
As you surf the web regarding home buying during a COVID market, there is an abundance of stories about people leaving large metro areas for a simple life in the suburbs. However, what are the real reasons driving this migration, and will this trend continue post-pandemic? The Washington Post wrote in a recent article that “multiple factors are driving the interest in moving, including low mortgage rates that increase affordability for buyers; the ability of many people to work remotely; and concern that some city amenities will take years to be widely available again.” We wanted to dive a bit deeper into the reasoning behind these driving factors, and here’s what we found.
Contemplating the Commute
One of the more significant changes brought on by the pandemic, is the switch that many were forced to make towards working remotely. In fact, “approximately 42 percent of Americans were working from home in June, according to a study by Stanford University’s Institute for Economic Policy Research. Many companies plan to extend the option of working at home indefinitely.” With this change, there has become less of a need to live close to work and more emphasis on other needs, such as space. According to a Realtor survey conducted in June, “9% of active homebuyers said that they would be willing to commute over an hour, up from 3% in March.” With less of a need to go into the office, there’s less of a reason to pay a higher price to live nearby.
Sacrificing Space – Not Anymore
With the majority of time being spent at home, there is a much larger need to have more space. According to the National Association of Home Buyers, “the median size of a home in the suburbs is 1,800 square feet—7% larger than the average home in a city of 1,678 square feet.” This extra space is needed for home gyms, home offices, a place to homeschool and more; as it seems this trend of being at home will continue for a little while longer. Along the same lines, the value of the space is also a factor, as many would rather pay more for more than more for less; especially when the location of the home is not as important.
Why Pay City Prices without City Life?
As sacrificing space has become a no-no, so has paying higher prices for city living. Affordability has become more important now than ever before as a major driving factor of the migration of homeowners out of urban areas. Prior to the pandemic, you would pay half the price in the suburbs that you would in the city for the same-sized home. Along those same lines, a 2017 Zillow survey found that nationally, “families spend an average of $9,073 more per year to cover basic housing and child care costs in the city than in the suburbs.” But all the quarantining, staying at home, and working remotely has really devalued the importance of proximity while placing an emphasis on what is affordable.
Remote Learning Has Us Really Thinking
For families with children, schools have always been a deciding factor when it comes to purchasing a home. However, with Zoom in full force this year and a need for parents to rely heavily on schools for technology assistance, remote learning, and more, the public school systems in the suburbs are becoming even more appealing. Prior to the pandemic, “public school systems in the suburbs outperform schools in urban areas with respect to test scores, graduation rates, and college placement. Suburban schools also usually have more outdoor space for sports and other recreation.” So, add in that all classes are online and many parents of students in private schools are becoming less willing to pay those expensive tuition bills when they could get similar quality in the suburbs.
Thinking of migrating out of the city? A few things to keep in mind when heading to the suburbs:
- With more space comes more maintenance and higher utility bills. Thinking of a backyard? Say hello to lawn care and landscaping.
- Expect to spend more time behind the wheel in the suburbs, as public transportation is often harder to access.
- If you’ve been in the city for a bit, you may have forgotten about HOAs. Homes in the suburbs are more likely to be part of a homeowner’s association, which comes with additional monthly or annual fees.
- Did you know that property tax rates in the suburbs are frequently higher? Do your research on what to expect in your area so there are no surprises come tax time.
- Be sure to think about life post-pandemic as homebuyers in the suburbs must make lifestyle sacrifices if they purchase a home that’s not within walking distance of restaurants and nightlife. However, many suburbs are making strides when it comes to enriching such experiences.
Are you ready to make a move from the city to the suburbs? Contact your preferred Dickens Mitchener real estate agent to get started. Don’t already have an agent? Our relocation director, Catharine Pappas, can pair you with an agent today. Contact her at (704) 661-2402.
