I came across this interesting article that addresses what our real estate market might be like in a post-COVID-19 world. I think the author shares great insight and thought you might enjoy the information.
When the quarantines lift and the crisis subsides, what potential (real estate) market shifts will we see?
BY CHRISTY MURDOCK EDGAR
April 12, 2020
It seems that everyone is reaching for their crystal ball, trying to predict the next move in the war against COVID-19. Gauging the impact on revenue, spending and regulations is an important part of weathering the economic impact of the current crisis. Regarding real estate, let’s consider how the real estate market may look and what unexpected changes may be coming up.
Potential market shifts
The impact of COVID-19 is having a variety of effects on people of all ages and all parts of the economic spectrum. These effects will, in many cases, alter home buying, selling and ownership decisions for months or years to come. We may see some or all of the following changes.
Even before COVID-19, there were agents hearing from empty nesters who had downsized too far. Now, colleges and universities are closed indefinitely, new homeschoolers may continue online, and work-from-home lifestyles may become the new norm for some. Many homeowners who thought they could make do with a small space may be upsizing for the first time or re-upsizing from their downsized condos and bungalows.
While it was already a trend, multi-generational households may become the new norm for many, especially as the economy impacts jobs, college plans, retirement planning and more. In addition, many homeowners thinking of bringing in elderly parents may have pushed those plans forward due to COVID-19. They may be looking for a place better suited to their new living situation.
One of the first trends that became evident online and on social media when quarantines began was the large number of young professionals who had gone home to wait out the virus with their parents. Having left the cities where they work and returned to their hometowns, many of these young people may not go back. If the work-from-home situation continues — or if their jobs are eliminated outright — they may find themselves moving back home for good.
Significant shifts may be on the horizon for the way we live post-quarantine — and they’ll likely be reflected in design elements. More jobs and classes may go virtual permanently, more families may choose to home-school, and we’ll all be more aware of how much of the outside world comes into our homes. Look for larger houses with an emphasis on some or all of the following:
Multiple home offices
Mud rooms with lots of storage
Porches and balconies
Shifts from condos and townhomes to single-family homes
Unfortunately, many couples locked away together for months may find that their busy schedule was the only thing keeping them together. Post-virus breakups and divorces are almost certain to happen.
On the bright side, of course, some long-distance loves will find that they never want to be apart again, so there may be wedding bells — and home purchases — in many futures. And, of course, there is the oft-predicted COVID-19 baby boom, necessitating larger homes and big backyards.
While many areas have put a temporary moratorium on evictions and foreclosures, these will eventually end. Coupled with layoffs and job interruptions, this should result in a surge in demand for rental homes and apartments. In addition, some delayed moves will no doubt go forward, so this should be a lively market segment for some time to come.
With a rise in post-quarantine foreclosures and a possible glut of homes on the market, investor activity should rise as well. In addition, many investors discouraged by stock market losses may be interested in putting their money into real estate, especially if it seems to weather the economic downturn well.
Personally, I believe the author has done an outstanding job outlining many of the scenarios that could play out following this challenging time. If I can help you prepare or learn more, please let me know.
Stay safe, healthy, and happy!