Summary: Urban decentralization patterns are impacting US real estate markets and demand for suburban property sees a huge upsurge. EJ Dalius explains why.
A real estate shift is occurring in many metros as individuals are leaving urban life for rural areas or suburbs. The pandemic has brought sweeping changes that are restructuring the US real estate landscape. 2020 has tested each and every sector. Urban settings have congested modalities and planning. There are too many people at too many places at the same time.
When social distancing and isolation are the chief norms, congestion and urban modalities could be extremely difficult. Suburbs give you a sense of separation and the areas are open and spacious. In addition to commercial offices looking for land in those areas, many real estate companies are thinking of building new apartments or residential blocks in the areas.
Behind the boom
There’s a reason why urban exiles and housings are propelling a suburban housing surge across the country. Experts say that the sales are its zenith post the housing boom. This is something that makes you fret a little.
- Take the case of Inland Empire, a suburb that’s 45 miles away from the hustle and bustle of Los Angeles, as an example. It’s the epicenter of a land rush in the suburbs.
- During the pandemic, the single-unit houses constating the trade stock are a great commodity.
- The mortgage rates are the lowest in history, which fuels buyers to increasingly desert urban centers and areas.
- Instead, they are settling in areas where they can reside at a safe distance from others.
- Eric Daliusfeels it’s the most determinant in this regard. The suburban purchasing craze, riding on urban folks hunting for residential space and offices for comfortable quarantining, comes in the wake of the US economy depleting and contracting at a fast rate.
- The unemployment rate almost tripled in 2020. Leaders have managed to sustain the housing market by freezing or containing foreclosures and reducing borrowing costs.
- Investment of stimulus cash have flooded the concerned economy. By delaying the imminent crash, they have inflated the housing boom, Eric J Dalius elaborates.
Enhancing property rates
The surge in demand for suburban hubs will support and validate property values/prices in the outlying areas around Texas cities and Greater Houston metros. Upscale urban housing and numerous other trends underline suburban growth in the future.
- Work-from-home, the most prominent corporate field trend, has energized and bolstered the suburban real estate sector.
- Even professionals, who are working from home once or twice a week, are more open to exurban or suburban living.
- With the current trend reaching its peak, perception about long distance travels and commutes are set to change a lot, EJ Dalius specifies.
- Homebuyers, on their part, are responding to the change by moving to distant areas.
- Home-building companies and community developers are displaying a huge appetite for large number of developable plots in surrounding counties.
Suburban real estate growth is creating a future market for long-term retail development. The current market landscape has put immense pressure on US retail business. It will regain the push for new suburban planning and development.