flexiblefullpage - default
Currently Reading

Will the Exurbs Remain High in Demand? Experts Weigh In

Advertisement
billboard - default
Housing Markets

Will the Exurbs Remain High in Demand? Experts Weigh In


August 18, 2021
rural suburb
Photo: Ruslan Ivantsov | stock.adobe.com

Outlying suburbs, or exurbs, have been the shining star of the pandemic housing market but with an increase of workers headed back to the office and vulnerability to economic downturns, the future of the exurbs are unknown. Add in more uncertainties with the delta variant and it’s unclear whether or not the rising exurb home prices will stay afloat, says Realtor.com. The site’s chief economist says some areas saw price increases because of their attractiveness during the pandemic and those prices might not have much ground to stand on in the future. But the ongoing demand for homes and shortage of listings uplifts demand for exurbs.

“The desire for affordability, which is only going to become more important as interest rates go up, is going to keep interest in the suburbs and outer suburbs high. They have always been the escape valve for high city prices,” says Hale.

“It’s not a new phenomenon that, when people can’t afford the city, they look further out,” she continues.

The potential staying power of the work-from-home phenomenon will also likely prevent prices from slipping too much. If workers can go entirely remote or commute only once or twice a week, they may be more likely to seek out cheaper real estate in a more bucolic setting.

“I don’t think prices will drop off dramatically,” says Kelly Mangold, who specializes in real estate economics at the consulting firm RCLCO. “Everyone’s not going back to the office five days a week anytime soon.”

Investors, who typically seek out cheaper housing they can buy and flip or rent out, may also give these areas a boost.

“We’ll still see healthy price appreciation,” says Devyn Bachman, vice president of research at John Burns Real Estate Consulting. Or in certain areas that experienced rapid price hikes, “you may see small corrections in these markets.”

On the flip side, more square footage and larger backyards require more maintenance, and many cash-strapped buyers may not want to pay to have all that grass mowed or the snow shoveled. It’s also more expensive to heat a 3,000-square-foot home than one half the size.

Read More
 

Advertisement
leaderboard2 - default

Related Stories

Housing Markets

Realtor.com Releases Annual List of Top Housing Markets for 2024

Topped by Toledo, Ohio, these are expected to be the hottest housing markets in 2024

Housing Markets

The Best Places to Buy a Home During Fall

These housing markets offer greater inventory and more affordable list prices during the fall season

Housing Markets

Taking a Bite of the Big Apple: NY Top City for Vampires in 2023

These are the best and worst U.S. cities for blood donors, basement dwellers, and garlic haters

Advertisement
boombox1 -
Advertisement
native1 - default
halfpage2 -

More in Category

Get your sales and marketing teams together to create and deliver a consistent brand message from start to finish

Pundits may not agree on the timing nor the severity of the next economic downturn, but one thing’s certain: these 10 essential tactics will boost your business' efficiency, productivity, and profit

A closer look at what’s propelling the adoption of off-site construction methods in home building

Advertisement
native2 - default
Advertisement
halfpage1 -

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.