Currently Reading

Return to Work Begins to Impact Housing Demand

Advertisement
Multifamily

Return to Work Begins to Impact Housing Demand


August 5, 2021
urban apartment
Photo: auseklis | stock.adobe.com

The suburban shift resulting from the pandemic continues, but for the first time since early 2020, interest in urban areas is notably up. Homebuyers today look to outlying metros for more space and affordability because many no longer need to worry about proximity to the office. Rents in the largest U.S. cities have increased 11.4% just this year whereas typical rent growth averages at 3.3%, says Realtor.com. With companies returning to the office, there’s been an uptick in buyers looking for real estate in cities. 

But as more people are required to work in person, Zakinova has seen a shift again in people looking for real estate in cities. The S&P CoreLogic Case-Shiller Home Price Index rose to 254.92 in May — the largest growth since the index was started.

“I feel that unless you are really in a position where you are more than a six figures earner, you definitely have no opportunity in New York. You definitely need to double income, triple income in order to qualify for the mortgage,” Zakinova said.

Miranda Penning graduated from college in May and just got a job in New York City that is hybrid, with the option to work from the office or remotely. She has been actively looking for an apartment in New York City using StreetEasy to search for apartments

“Just a rule of thumb that a lot of people told me for, a budget is just that you want to spend max like 30% of your annual salary on housing,” Penning said, “So I’ve taken that into consideration when setting my max budget.”

In the U.S. the median price of newly built homes increased by 6% from June 2020 to June 2021 while new home sales fell to a pandemic low, according to data released by the U.S. Census Bureau on July 26.

The low interest rates, shortage of supply of homes and government support have contributed to this rise in home prices.

Buyers that are getting bid out or can’t afford a home in this market, are turning to rentals or staying on the sidelines, Bruno Aropovia, a realtor in Phoenix said.

Read More
 

Related Stories

Off-Site Construction

Pandemic Boosts Business for Off-Site Construction Company

Just as the pandemic spurred a building boom, it did the same for off-site construction company Factory OS. Factory OS constructs apartment…

Financials

Millions of Renters Left Waiting as Aid Disbursement Lags

CNBC says the $45 billion in rent aid has been “bafflingly slow” to reach Americans, leaving more than 6 million households behind on payments.…

Multifamily

Metros Where New Rental Construction is Thriving

A new report from RentCafe found that despite the pandemic, the number of newly constructed rental units has kept pace with years prior. For the…

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.