First-timers and downsizers are increasingly heading to the exurbs in search of affordable, and often newer single-family homes in communities with lower density.
Javier Vivas, director of economic research at Realtor.com tells MarketWatch, “In a growing economy, that is where you see sales pick up.” According to the National Association of Home Builders' data, seven percent more single-family homes were built in exurbs in 2018 than in 2017, while overall home building activity grew three percent.
But underlying today’s exurban fervor is an uncomfortable truth: The reason that homes in these communities are so affordable is that these areas were among the hardest-hit by the housing crisis and recession, and prices have only recently recovered.
Thankfully, the lending standards that are the industry standard these days should provide a cushion. “Things are different this time around,” Auction.com VP of market economics Daren Blomquist said. “People are moving further out to be able to afford homes. The difference now is it is based on true affordability rather than faulty affordability standards. In the exurbs, the people who are buying there truly can afford it.”
Advertisement
Related Stories
Design
What Gen-Z Buyers Really Want in a Home
The fervor of planning for Millennials in the home building industry has now pivoted to Gen Z. So, what does this new generation want?
Demographics
Post-Pandemic Trends: Working From Home
A greater share of workers are still working from home than before the pandemic and they're concentrated in the information, professional, and financial services sectors
Demographics
Millennials on Top Again as Largest Homebuying Group
Millennials beat out Boomers as the largest homebuying cohort, according to a recent report, but Boomers remain the largest generation of home sellers
