Will We See a Surge of Homebuyers Moving to the Suburbs? | MyKCM

As remote work continues on for many businesses and Americans weigh the risks of being in densely populated areas, will more people start to move out of bigger cities? Spending extra time at home and dreaming of more indoor and outdoor space is certainly sparking some interest among homebuyers. Early data shows an initial trend in this direction of moving from urban to suburban communities, but the question is: will the trend continue?

Home for Sale Illinois – Homebuyers
Will We See a Surge of Homebuyers Moving to the Suburbs? | MyKCM
Suburban Homebuyers

According to recent data from Zillow, there is a current homebuyers surge in urban high-end listings in some larger metro areas. The month-over-month increase in these homes going on the market indicates more urban homeowners may be ready to make a move out of the city, particularly at the upper end of the market (See graph below):

Homebuyers News

Why are people / homebuyers starting to move out of larger cities?

With the ongoing health crisis, it’s no surprise that many people are starting to consider this shift. A July survey from HomeLight notes the top reasons people are actually moving today:

  1. More interior space
  2. Desire to own
  3. Move from city to suburbs
  4. More outdoor space
Suburb Homebuyers

More space, proximity to fewer people, and a desire to own at a more affordable price point are highly desirable features in this new era, so the list makes sense.

John Burns Consulting notes:

“The trend is accelerating faster than anyone could have predicted. The need for more space is driving suburban migration.”

In addition, Sheryl Palmer, CEO of Taylor Morrison, a home building company, indicates:

Suburban Homebuyers

“Most recently, we’re really seeing a pickup in homebuyers saying they want more rural or suburban locations. Initially, there was a lot of talk about that, but it’s really coming through our homebuyers today.”

The National Association of Home Builders (NAHB) also shares:

“New home homebuyers demand is improving in lower density markets, including small metro areas, rural markets and large metro exurbs, as people seek out larger homes and anticipate more flexibility for telework in the years ahead. Flight to the suburbs is real.”

Will the shift pick up speed and continue on?

The question remains, will this interest in suburban and rural living continue? Some, like Lawrence Yun, Chief Economist at the National Association of Realtors (NAR) think the possibility is there, but it is still quite early to tell for sure. Yun notes:

Homebuyers

“Homebuyers considering a move to the suburbs is a growing possibility after a decade of urban downtown revival…Greater work-from-home options and flexibility will likely remain beyond the virus and any forthcoming vaccine.”

While much of the energy behind this trend has largely been accelerated by the current health crisis, monitoring the momentum over time is critically important. Businesses are discovering new and innovative ways to function in remote environments, so the shift has the potential to stick. Much like the economic recovery, however, the long-term impact may hinge largely on the health situation throughout this country.

Bottom Line

Early data is showing a shift from urban Homebuyers to suburban Homebuyers markets, but keeping an eye on this trend will help us understand how it will ultimately play out. It may just be a temporary swing in a new direction until Americans homebuyers once again feel a sense of comfort in the cities they’ve grown to love.


Homebuying on a tight budget? Consider a townhome

If rapidly rising prices are making you feel squeezed out of the single-family homebuyers market, consider downsizing your dream. After all, first homes are rarely forever homes.

It’s tempting to put off the purchase of a home until either home prices fall or your income rises. Tempting, yes. Smart? Not really. The wise thing to do is to begin building equity now so that you can later use it for that homebuyers dream home. One of the best ways to do this is to buy a townhome.

Townhome living has its advantages and disadvantages. The latter includes the likely HOA fees that will be tacked on to your monthly house payment and living in very close proximity to your neighbors.

Tolerate that, however, and you’re on your way to making the home of your dreams a reality.

Today, we take a look at four reasons to consider purchasing a townhome. But first:

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