Post-Pandemic Housing Market Predictions
Over the past year, every sector of the United States economy was impacted by the COVID-19 pandemic. In a nation already facing an affordable housing crisis and plummeting inventory on homes available for sale, the U.S. now faced staggering unemployment due to the pandemic.
Nonetheless, the housing market fared surprisingly well due to unforeseen factors during these unprecedented times. Over the past year, U.S. housing habits shifted in a number of ways as Americans adjusted their lifestyles and coped with unexpected challenges. As the world begins the long post-pandemic recovery, what can we expect to see in the housing market?
In this post from Bill Buys Houses in Minnesota, we’re breaking down some of the experts’ post-pandemic housing market predictions to help sellers make important decisions. Give us a call to learn more about how we buy houses for cash.
Housing Market Changes During the Pandemic
As growing concerns about the pandemic first began to emerge in early 2020, the impact on the housing market was immediate with both anticipated and unexpected outcomes.
These are just a few of the major housing market trends we saw during the peak of the pandemic:
● The rise in remote employment allowed many more affluent Americans to relocate.
● More wealthy Americans purchased vacation homes to escape the busy city during the pandemic.
● Working millennials began to move out of the city for suburban housing.
● The shift toward online interactions led to an increase in virtual home tours and the digitalization of real estate services.
● Many buyers purchased new homes remotely without stepping foot on the property until after taking ownership.
● Mortgage rates remained low, increasing homeownership among first-time home buyers.
● Millions of Americans facing unemployment relied on the eviction moratorium and other COVID relief measures.
The Anticipated Economic Rebound
More than a year after the first U.S. lockdown, Americans are finally breathing a well-deserved sigh of relief as the end of the pandemic is finally in sight. The anticipated economic rebound looks promising, especially in many real estate markets across the country.
These are some of the predictions we’ve heard for the housing market recovery:
1. Regional Challenges
As in previous economic recoveries, experts predict that housing challenges will vary from one region to the next. In areas where foreclosures hit the hardest during the peak of the pandemic, recovery will be tied to the economic recovery of local industries. For example, the housing market’s recovery in hospitality-heavy markets like Orlando, New Orleans, and Las Vegas will depend heavily on how quickly tourism recovers.
Other markets that demonstrated unexpected resilience during the pandemic are expected to continue that trend during the recovery period. Those areas include environments where it’s easy to work remotely like Boise City, Dallas/Fort Worth, Atlanta, Indianapolis, and the Twin Cities metro area.
2. Suburban Living
Many big-city housing markets were maxed out before the pandemic. But with the lifestyle changes spurred by the past year, expect to see an even more dramatic flight to the suburbs in the coming years.
Expect suburbs to reflect urban living as more home buyers look to the suburbs. Although the remote work trend will continue as employers respond to the post-pandemic demand for a better work-life balance, remote employees will dine out more and use local services.
This increase in demand for dining, coffee, and happy hour opportunities will be reflected in new business openings. New stores, parks, and even schools are likely to follow this suburban boom as the demand for city living amenities rises. In turn, the value of homes in these areas is expected to gradually increase.
3. Single-Family Housing Demand
During the pandemic, the shift in demand from multi-tenant properties to single-family homes was significant. Before the pandemic, millennials and zoomers were choosing to live in apartments with convenient access to work and other amenities.
But these days, home is playing a bigger role in our lives. More working professionals are looking for plenty of space with a home office and room to exercise and play in their own homes. Even before the pandemic, there was a housing shortage of nearly 4 million homes in the United States. This means single-family home prices are likely to skyrocket until new construction finally catches up with the demand.
Call to Sell Your House in Minnesota
Are you one of the millions of Americans whose housing needs changed over the past year? If you need to move now but you first need to sell a house in as-is condition, making the transition can seem impossible.
Whether you need to sell your house as is due to unexpected financial circumstances or you need to sell your home fast so you can move for work, we can help. Bill Buys Houses can get you in touch with a cash home buyer so you can move on with your life wherever the future takes you.
With years of industry experience and a supportive, customer-focused experience, we prioritize our customers’ needs every step of the way for a hassle-free cash home sale. We’ll walk you through your options so you can make an informed decision that works best for you and your family. Contact us online, or call to request an offer at 651-270-9191.