Suburban housing demand is increasing, according to a new report from realtor.com®, as work-from-home and flexible schedule options become the norm, allowing potential homebuyers to purchase outside their commuting zone.
The findings:
- Share of suburban home shoppers increased 42.1% since the onset of COVID and took a 24% bigger share on September realtor.com® views than listings in urban areas
- Suburban housing is still relatively affordable compared to expensive urban areas, but buyer demand is shrinking the home price gap, which is down to 7% from 10% in 2019
The takeaway:
“The suburbs have always attracted homebuyers looking for more house for their money, but recent data reflects just how much suburban competition has intensified. With the rise in long-term remote work options and downtown rents making a rapid comeback, suburban vs. urban housing dynamics are shifting,” said realtor.com® Chief Economist Danielle Hale in a statement. “From inventory to time on market, recent data shows suburban buyer activity has accelerated at a faster pace than in urban areas. Notably, the price premium is shrinking between notoriously expensive urban housing and suburban for-sale homes, typically known for more bargains.”
“Buyers can still get more bang for their buck in the suburbs, but affordability is increasingly a consideration in many markets,” added Hale. “As the COVID recovery continues and U.S. home prices remain near record-highs, whether the suburban vs. urban gap in housing costs keeps closing will be an important factor to watch.”
