The pandemic had some interesting effects on the real estate market in 2020, and many of those same trends seem likely to continue into 2021 while people are still waiting for distribution. Many buyers are adjusting to a potentially permanently remote working environment. Here are some of the most significant factors expected to contribute to the real estate market this year.
- Time to sell
With mortgage rates historically low, many people are looking to buy houses that the demand is outpacing the supply. 2020 produced an excellent market for sellers, and going into 2021, it seems like this trend will persist.
- More Space
With the pandemic forcing most families to stay inside, having adequate personal space has become a primary concern for most people. Working adults need private, secluded areas to attend virtual meetings, while students look for distraction-free places to attend class. It has become more necessary than ever for individuals to have private spaces to retreat to when needed; families are upgrading their accommodations to meet this need.
- Leaving Cities
Cities have somewhat lost their appeal since the events and attractions which normally incentivize moving into a crowded metropolis are unavailable. Real estate in large cities is often much more expensive than less populated areas, which has given them a distinct disadvantage when many people are prioritizing affordability. Many people are opting to relocate to the suburbs for more space and privacy.
- Remote Work Havens
Many companies are considering allowing their employees to continue to work from home after the pandemic has ended; since this eliminates the need for a commute, many people are now looking into moving to locations that allow them to prioritize other considerations, like weather and affordability. The most popular of these places seem to be ones with a large diversity in employment opportunities].
- A Bad Time for Renters
Unsurprisingly, the rental market has been hit hard by the pandemic. Many people who rent houses or apartments work in industries that have been devastated by the pandemic. While there have been moratoriums on evictions around the country, the lack of continuous stimulus checks or consistent employment opportunities has left many renters unable to pay their rent. Without government assistance and a swift economic recovery, this trend is likely to continue into 2021. The pandemic has drastically altered the projected real estate landscape for 2021, encouraging people to prioritize personal space and comfort in their homes. Depending on how the government chooses to handle the crisis from now on, there may be an intensification of these trends, leading to more changes in 2021.