This week marks our 25th consecutive issue of The Light. We looked back at all of our posts and picked the top ten housing market trends from the last six months. Which ones are most important to you?
10. We are experiencing one of the strongest housing markets in history. Low mortgage rates have created some of the most affordable buying opportunities ever. Our survey of July housing market conditions confirmed a huge 63% sales jump year over year nationally. The second home market is exploding, with homes in convenient, drive-to-locations in highest demand.
9. The land market is hot! 60% of land brokers rated their markets as hot or on-fire during 2Q2020.
8. The Great American Move is underway. The shift to staying home has given many people the opportunity to work from wherever they want, a trend that is benefiting exurban regions in the affordable West and the affordable South. As a result, boom markets like Austin, Phoenix, Salt Lake City, and Tampa are recovering faster. Watch the “new boomtowns” of Charlotte, Denver, Dallas, and Nashville—they are not far behind!
7. Healthy amenities resonate with buyers more than ever. Buyers are prioritizing outdoor amenities that include great trails and opportunities for hiking and biking.
6. Everything that was old is new again—reimagine retail. The devastation wrought by retail closures will bring opportunities for redevelopment, especially for the residential sector.
5. Demand for single family home rentals is “through the roof.” This includes new purpose-built communities or build-for-rent (BFR). BFR is the darling asset class of the real estate sector today.
4. Those who aren’t moving are remodeling their homes. Home Depot’s revenue surged 23% in the second quarter of 2020.
3. New home designs are evolving to accommodate a new lifestyle. New equals healthy, and elements that promote health and wellness, like touchless features and easy-to-clean surfaces, are getting a huge boost. The home office and private space for schooling is now a high priority for buyers who are looking for dedicated quiet spaces. Multigenerational living is also taking on greater significance, as 1.1 million 23–30 year olds moved “back home” since February.
2. It takes a pandemic to get a millennial to buy a home. First-time buyers are most likely to be living in dense apartments that lack “social distancing” opportunities and don’t have a home to sell. More comfortable with new technology that includes viewing products and services online, millennials are motivated to buy and adaptable to market changes caused by COVID. Other strong buyer profiles include growing families experiencing cabin fever.
1. The Light is 25 weeks old today. Thank you to all the JBREC members who helped produce the Light over the last six months. Liz Rhee and Asia Inn-Souphomphakdy create the infographics each week. Richard Mones helps us post the content and Ted Beam removes all of our misspellings. Jenni Lantz inspires us with design ideas, and Mikaela Sharp helps us watch trends. Jody Kahn and Devyn Bachman keep us informed with insightful builder and land surveys. And finally, thank you to John Burns who challenges us and keeps us thinking.