Many people are upsizing their home while lowering their housing cost.
The pandemic’s short and long-term effects have drastically influenced our current housing market. With more people than ever moving and limited inventory causing housing prices to rise, how are people getting larger homes while lowering their expenses? This article by NAR summarizes what the current research says.
Larger Homes But Lower Cost
It may seem counterintuitive that people are moving into larger homes but are seeing an decrease in the amount that they are spending on housing, but NAR reports that there are a few reasons for this relating to the fact that many buyers are switching cities.
More affordable housing was a big motivating factor for people who have moved within the past year, according to NAR. Many buyers opted to switch cities (thanks to remote working situations) to one where more spacious homes are available at a lower cost than in their previous city.
NAR also reports that people lowered their housing expenses by targeting areas with lower taxes. Fully 22% of buyers surveyed in the research they summarize report that purchasing in an area with lower property taxes was a factor in their decision.
Will It Stick?
NAR states that 80% of respondents in the survey they are citing report that they feel happier since moving. It is hard, however, to say how many of the trends that came about during the pandemic will last into the future. There are many factors to consider when it comes to housing trends in particular: continued acceptance of WFH vs returning to the office, the appeal of proximity to events and entertainment, the time associated with upkeep of larger homes and gardens once life gets back to normal, etc.
No matter the continued or shifting migration patterns, American Real Estate Media will be standing by to assist agents and their clients with the sale of their homes by providing unbeatable value and quality on real estate photos, walkthrough videos, aerial photos, and virtual tours.
