Suburbia’s white picket fences and sprawling backyards have lured in city dwellers amid the pandemic, but a real estate CEO says this mass migration may have a lifespan of only two years. Eventually, the demand for big city living will return, according to CNBC. Hessam Nadji, president and CEO of Marcus & Millichap, says rentals are going fast in suburban areas outside of major cities such as New York City, Seattle, and Miami. Searches for homes in suburban zip codes increased to 13% in May, which is double the pace of urban growth.
"I think the next 18 to 24 months are going to show a lot of exodus out of central business districts, as you can expect,” Nadji said in an interview on “The Exchange.” “We’re seeing there’s a lot of office vacancy, for example, in the suburbs that have now been absorbed; there’s a lot of demand for rental homes that we’re seeing because people are fleeing especially hot spots like New York, but ... you just have to keep a long-term view on it.”
Millennials, who now make up the largest cohort of homebuyers, in metropolitan areas have grown more interested in shopping for properties in the suburbs in recent months. Real estate searches in suburban zip codes spiked 13% in May, doubling the pace of urban growth, as the market began to recover, based on realtor.com data.
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