SANTA CLARA, Calif.,
Sept. 25, 2020 /PRNewswire/ -- Driven
by a desire for more space, affordable homes, and a new-found
freedom to work remotely, a deurbanization trend has emerged among
homebuyers, according to new data released today by
realtor.com®. While housing markets in both suburban and
urban areas recovered rapidly post-COVID shut down, suburban
markets have experienced more interest from home shoppers, stronger
improvement of price growth, and quicker home sales than urban
areas this summer.
"In one of the most seismic shifts to the U.S. workforce since
the introduction of the Internet, many U.S. workers now have the
flexibility to work remotely and choose where they want to live,"
said realtor.com®'s Chief Economist, Danielle Hale. "Data shows in our post-COVID
world there's a strong preference towards a suburban lifestyle with
its bigger houses, backyards, and quiet streets. But American
cities are not becoming ghost towns anytime soon; in fact they are
also seeing an uptick of homebuyers, it's just not as strong as the
surge we're seeing in the suburbs."
Home price growth in the suburbs has improved more quickly
during the pandemic
- Historically, home prices have grown faster in urban areas than
the suburbs, however, suburban prices have accelerated 3.2%
since the first week of March, compared to an acceleration of only
2.3% for urban areas*.
- Within the nation's top 10 largest metros, prices started to
rise faster in the suburbs than in urban areas since March; the
median listing price of suburban properties within these metros is
now up 5.2% over last year, whereas in urban areas it's up
by only 2.4%. See chart below for metro specific data.
Properties in both suburban and urban areas are flying off
the market, but suburban homes are selling much more quickly than
last year
- At the peak of the pandemic in April, home buyers paused their
search and the time a typical property spent on the market spiked
in both suburban and urban areas. Following the real estate freeze,
the time it took to sell a suburban home recovered faster than
urban homes. In fact, suburban homes spent only 28.5% more
time on the market in early May compared to last year, whereas
urban homes spent 34.1% more time on the market compared to
last year.
- As the housing market began to accelerate in the summer months,
properties began to sell at an unprecedented fast-pace in both
suburban (11.4% faster last year) and urban areas
(8.0% faster than last year).
- This difference between urban and suburban homes was even more
pronounced within the nation's top 10 largest metros; suburban
homes are spending 16.2% less time on the market compared to
last year, whereas urban homes are spending 10.4% less time
on the market. See chart below for metro specific data.
"Based on the rising popularity of the burbs, some buyers might
think they can catch a break by searching in the city, but
unfortunately that's not the case. Rising home prices and fast home
sales are everywhere. If you're a buyer in today's market, finding
and closing on your dream home is not going to be easy," noted
Hale.
Suburban homes for sale are evaporating as more and more
buyers flock to the suburbs
- As the pandemic drives greater demand for larger homes and
backyards, the number of homes for sale in the suburbs is dwindling
at a faster rate than in urban areas.
- Currently, the number of homes for sale is down 41.3%
compared to last year in suburban areas, while urban homes for sale
are down 34.3%. This divergence in available homes began in
early April, during the peak of the COVID-19 shutdowns, and has
continued to accelerate since.
- Within the nation's 10 largest metros, the divide in the number
of suburban and urban listings is even greater; the number of
suburban homes for sale are currently down 40.2% compared to
last year, whereas suburban homes are down 13.4%. See chart
below for metro specific data.
Online home shopping habits have shown a growing preference
for suburban homes
- Throughout the pandemic, realtor.com® home shoppers
have viewed more homes in suburban areas vs. urban areas.
Immediately following stay at home orders, in late March, the count
of shoppers viewing suburban homes fell by only 3.1% since
last year, compared to 5.1% for urban shoppers.
- As real estate activity began to recover, interest in suburban
homes began to accelerate. In August, the number of suburban home
shoppers on realtor.com® grew by 53.9% since last
year, compared to a 50.7% increase for urban home
shoppers.
- Within the nation's 10 largest metro areas, suburban home
shoppers grew by 56.4% year-over-year, compared to only
43.6% higher for urban areas. See chart below for metro
specific data.
Metro
|
Listing Price
Growth Y/Y
|
Time Spent on
Market Y/Y
|
Inventory
Growth
Y/Y
|
Home Shopper
Count
Y/Y
|
U.S.
|
Urban:
7.7%
Suburban:
7.3%
|
Urban:
-8.0%
Suburban:
-11.4%
|
Urban:
-34.3%
Suburban:
-41.2%
|
Urban:
50.7%
Suburban:
53.9%
|
New
York-Newark-Jersey City, N.Y.-N.J.-Pa.
|
Urban:
2.1%
Suburban:
5.6%
|
Urban:
-27.3%
Suburban:
-26.9%
|
Urban:
18.6%
Suburban:
-28.0%
|
Urban:
47.8%
Suburban:
86.4%
|
Los Angeles-Long
Beach-Anaheim, Calif.
|
Urban:
3.0%
Suburban:
4.4%
|
Urban:
31.8%
Suburban:
-0.8%
|
Urban:
14.4%
Suburban:
-36.1%
|
Urban:
44.4%
Suburban:
52.1%
|
Chicago-Naperville-Elgin, Ill.-Ind.-Wis.
|
Urban:
0.2%
Suburban:
2.4%
|
Urban:
-11.9%
Suburban:
-6.2%
|
Urban:
-29.2%
Suburban:
-42.8%
|
Urban:
41.2%
Suburban:
58.0%
|
Dallas-Fort
Worth-Arlington, Texas
|
Urban:
4.5%
Suburban:
5.6%
|
Urban:
-11.7%
Suburban:
-6.5%
|
Urban:
-37.7%
Suburban:
-41.9%
|
Urban:
36.4%
Suburban:
44.8%
|
Houston-The
Woodlands-Sugar Land, Texas
|
Urban:
4.8%
Suburban:
4.2%
|
Urban:
-4.4%
Suburban:
-3.4%
|
Urban:
-12.3%
Suburban:
-36.2%
|
Urban:
30.5%
Suburban:
40.1%
|
Philadelphia-Camden-Wilmington,
Pa.-N.J.-Del.-Md.
|
Urban:
10.4%
Suburban:
9.8%
|
Urban:
-24.2%
Suburban:
-35.1%
|
Urban:
-42.6%
Suburban:
-50.2%
|
Urban:
42.7%
Suburban:
56.4%
|
Washington-Arlington-Alexandria, DC-Va.-Md.-W.
Va.
|
Urban:
0.4%
Suburban:
4.7%
|
Urban:
-27.9%
Suburban:
-36.4%
|
Urban:
-16.0%
Suburban:
-53.6%
|
Urban:
56.2%
Suburban:
59.4%
|
Miami-Fort
Lauderdale-West Palm Beach, Fla.
|
Urban:
-2.2%
Suburban:
0.3%
|
Urban:
4.5%
Suburban:
-5.9%
|
Urban:
-3.9%
Suburban:
-20.6%
|
Urban:
61.7%
Suburban:
71.6%
|
Atlanta-Sandy
Springs-Roswell, Ga.
|
Urban:
5.0%
Suburban:
8.5%
|
Urban:
-1.3%
Suburban:
-7.8%
|
Urban:
-28.9%
Suburban:
-48.4%
|
Urban:
37.9%
Suburban:
45.8%
|
Boston-Cambridge-Newton, Mass.-N.H.
|
Urban:
-0.4%
Suburban:
6.0%
|
Urban:
-32.1%
Suburban:
-32.8%
|
Urban:
4.0%
Suburban:
-43.7%
|
Urban:
36.8%
Suburban:
48.8%
|
* In August, prices grew by 7.7% over last year for urban areas
and 7.3% for suburban areas, up from 5.4% and 4.1% in March,
respectively.
About realtor.com®
Realtor.com®
makes buying, selling and living in homes easier and more rewarding
for everyone. Realtor.com® pioneered the world of
digital real estate 20 years ago, and today through its website and
mobile apps is a trusted source for the information, tools and
professional expertise that help people move confidently through
every step of their home journey. Using proprietary data science
and machine learning
technology, realtor.com® pairs buyers and
sellers with local agents in their market, helping take the
guesswork out of buying and selling a home. For
professionals, realtor.com® is a trusted
provider of consumer connections and branding solutions that help
them succeed in today's on-demand world. Realtor.com® is
operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV]
subsidiary Move, Inc. under a perpetual license from the National
Association of REALTORS®. For more information,
visit realtor.com®.
Media Contacts:
Cody Horvat,
cody.horvat@move.com
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SOURCE realtor.com