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COVID Market Impact: Suburban Housing Markets Are Bouncing Back Quicker

Home Industry News
By RISMedia Staff
June 17, 2020
Reading Time: 2 mins read

A new report from realtor.com® shows that buyer preference has changed as consumers make their way back onto the market following the peak of the pandemic. According to the report, online listing views on realtor.com® in suburban zip codes grew by 13 percent, nearly double the growth of urban areas.

Days on market have slowed on a national level; however, rural and suburban markets are seeing lower increases, tied to stronger consumer interest. In rural areas, days on market increased by 25 percent, and in suburban they increased 30 percent—both lower than the 35 percent increase in urban areas.

Fifty-four of the 100 largest metros in the U.S are experiencing increased interest in the suburbs. Suburban listing views in May 2020 surpassed those from May 2019 and the beginning of 2020. Of the nearly 20,000 zip codes tracked in realtor.com®’s Hottest Market rankings, according to the report, suburban zip codes saw a median jump of 404 spots, while rural ZIP codes saw a median jump of 846 spots.

These are the top 10 Metros where suburban listing views increased most YoY:

1. McAllen, Texas, is shifting toward Mission (zip: 78572)
2. Oklahoma City, Okla., is shifting toward Norman (zip: 73072)
3. Augusta, Ga., is shifting toward Aiken (zip: 29801)
4. Fresno, Calif., is shifting toward Kingsburg (zip: 93631)
5. Minneapolis is shifting toward Andover (zip: 55304)
6. Durham, N.C., is shifting toward Rougemont (zip: 27572)
7. Raleigh, N.C., is shifting toward Clayton (zip: 27527)
8. Colorado Springs, Colo., is shifting toward Peyton (zip: 80831)
9. Greensboro, N.C., is shifting toward Brown’s Summit (zip: 27214)
10. Knoxville, Tenn., is shifting toward Louden (zip: 37774)

“This migration to the suburbs is not a new trend, but it has become more pronounced this spring,” said Javier Vivas, realtor.com® director of economic research. “After several months of shelter-in-place orders, the desire to have more space and the potential for more people to work remotely are likely two of the factors contributing to the popularity of the burbs.”

“Suburban interest typically peaks during the summer, as families look to move before the start of the school year. However, suburban interest in May outpaced last year’s July peak, which could indicate even stronger interest in the suburbs as the summer homebuying season continues to heat up,” said Vivas.

For more information, please visit www.realtor.com.

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