No doubt a lot has changed since the world turned upside down in March 2020, when COVID-19 reached nearly every single country. People started fleeing big cities, and the uncertainty of the situation led to most people working from home. That, in turn, has drastically changed the demand of buyers in the real estate markets. At that point, and to this day, buyers want and need more space in their homes. The indoor/outdoor living experience is especially in demand in urban cities with large condo presence. In cities across the US with a mix of condos, town homes, and smaller homes – also caused buyers to need more space because they were working remotely and home schooling their children.
In 2020, home prices began a steep rise, and condo prices began to soften. The condominiums’ that boasted amenities were closed, driving the demand for more spacious homes with alternative amenities even higher. For a long while, everyone was doing completely everything from home – working, exercising, homeschooling, watching new film and TV releases, dining etc. And as stores began closing down – online buying for all family needs was critical. Therefore, developers needed to reevaluate these amenities to be mindful of outdoor spaces – no matter the climate.
People began remodeling their homes – that, in turn, led to the supply chain being significantly disrupted, especially home remodeling needs – for interior and exterior materials. And as international shipments came to holt, there was shortage of wood, copper, cement, steel, paint – all building materials.
Having 2020 behind us, what we are still seeing in 2021 is that this need continues and driving the residential markets. Focus continues to be on lifestyle – living and working often in same space. Many people found they no longer needed to travel to an office. Demand is for homes in primary and secondary markets that are prominently larger single-family homes.
After a rent decrease in 2020, rents have skyrocketed in 2021 – prices for housing have on average increased 30-40 % in many areas and became less affordable to people, many of whom delayed returning to their jobs. Commercial sales and leases have also rebounded from a low point in 2020.
People are converting their garages on smaller lots with smaller homes – building more space and possibly creating additional rental income. In the time of uncertainty, having extra space to rent out can be a major lifesaver. Another alternative for additional income is Airbnb and vacation rentals. 2021 has seen that vacation homes have become in demand all over the country – ranches, farms, beach homes, ski properties – you name it. The demand has increased in many cases 100%.
Overall, we’ve seen a lot of changes, a lot of ups and downs over the past two years. What’s in store for the housing market in 2022? Follow us on social media to keep up with the latest real estate market updates.