Urban expats
Welcome to the club, y’all
THERE’S almost no limit to how covid-19 has changed America, with drastic increases in people working from home, to questions about how to return to school, to boosts in food delivery orders. Everything seems upended. Everything is upended.
Including home sales. In some areas, real estate is moving at rates that seem counter-intuitive. This is a pandemic, after all. But folks are snatching up suburban homes thanks to low interest rates brought about by the same factors driving up the unemployment rate.
Bloomberg had a story last week on a growing group: urban expats. These are people who got tired of paying high rent to live in a tiny space and, oh-by-the-way, have nothing to do because all the fun city things—museums, theaters, sports arenas—are all closed.
“The exodus to sparser landscapes is happening across the U.S., but it’s most dramatic outside pricey, crowded New York, Los Angeles, and San Francisco,” according to the wire service. “In Manhattan, signed sales contracts for condos and co-ops fell 60 percent in July from a year earlier. Meanwhile, in the northern bedroom communities of Westchester County and Fairfield County, Conn., deals for single-family homes doubled.”
Folks in California are so hungry for suburban housing, they’re camping out overnight at real estate offices. They’re waiting in lines for hours in 104-degree weather. Though, since it’s California, it’s a dry heat.
The changes brought about by a once-in-a-century pandemic probably won’t slow down for a while. The experts don’t have a vaccine yet. And even when one’s available, that’s no guarantee everyone will flock back into urban living.
Another factor on rising suburban home sales: an increase in available remote work options. If someone can take their city salary, but move out where they can afford a house and work remotely, why wouldn’t they? They could invest their money in a mortgage instead of rent. And as long as said home comes with a reliable high-speed Internet connection so they can work, what’s stopping them? Fear of lawn maintenance?
In the car last week, we heard a story on NPR about dropping commercial retail building sales. That certainly tracks. If companies are discovering their employees are just as productive at home, they may not see the value in paying for expensive office buildings as an absolute necessity.
The times certainly are a-changin’. Whether they’ll change back is anyone’s guess. Suppose we’ll have to wait until this virus is over to find out. For all you new homeowners, one piece of free advice: Make sure you fertilize that lawn. Or else, the kids will complain about the stickers.