The COVID-19 pandemic has a huge impact on homeownership. Not only is the housing market booming, but trends are starting to emerge. The National Association of Realtors (NAR) surveyed more than 8,000 Americans surveyed between July 2019 and June 2020. Their study, produced annually, contains a new section this year that examines how the pandemic is affecting people’s attitudes and purchase and sales decisions.
Trends Emerging Among Buyers Since the Pandemic
1. Buyers choose housing with more rooms, square footage and more yard space: There are several reasons buyers are choosing bigger. First, we are home more and our home is now our sanctuary. Second, is the need for a home office, and in my case, we needed two home offices. Third, is the need for multigenerational homes.
2. Multigenerational homes grow in popularity: Buyers who purchased after March were more likely to purchase a multi-generational home at 15% compared to 11% who purchased before April. Buyers cited multiple reasons, such as the health and caretaking of aging parents and relatives, cost savings, the desire to spend more time with aging parents and relatives, and the need for the delayed independence of children. They also said buying a multigenerational home allowed them to pool multiple incomes to purchase a larger home.
3. Homes are pricier: Those purchasing after March were more likely to purchase a more expensive home—$339,400 compared to $270,000 for those who purchased before April. What’s more, 23% of buyers who purchased after March purchased a home that was $500,000 or more. Those who bought after the COVID-19 outbreak began tended to have higher incomes: $100,800 compared to $94,400 for pre-April buyers.
4. More renters become owners: The pandemic has driven home purchases among those who were renting an apartment or house. Prior to April, about 36% of home buyers were coming from the ranks of renters; since then, the percentage has jumped to 45%.
5. Buyers show love to suburbia: Among buyers who purchased between April and June of this year, 57% picked a suburban location, compared to 50% of pre-pandemic buyers. Buyers haven’t abandoned urban areas, however. Prior to the pandemic, 12% of buyers purchased in an urban area or central city; since April, that percentage has increased slightly to 14%. A lot of this change is because of the higher possibility of remote working.
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