As COVID restrictions ease and the great resignation continues (and perhaps even accelerates), more companies are opting to allow permanent work from home in order to keep their talented people. As a result, buyers and renters will continue to move to desirable areas where they can get more house for their money. Below are 5 solutions to address domestic migration this year.
- Expect more migration winners and losers. State population growth and loss will intensify this year as migrating residents seek affordable homes and higher quality of life.
- Expect buyer and renter migration further from the office to continue. This can mean relocating in search of value or moving to vacation destinations (often part time or in a second home). We expect more price appreciation in the outlying areas or, said another way, the premium to live near employment to narrow. This does not mean the death of urban areas as, simultaneously, we are seeing people return to the cities.
- Anticipate continued consumer and investor single-family rental demand. Investors continue to view rental home as a hedge against inflationary pressures. However, we also think less sophisticated investors are looking for short-term price appreciation, which is a risky play. Falling stock prices, however, could cause some investment capital to rotate back into stocks.
- Accommodate permanent and hybrid work-from-home models. Smart home features and home office spaces will attract remote workers leaving the city.
- Work-from-home trends will allow buyers and renters to migrate in search of affordability or to be near family and friends.
Our team compiled 22 opportunities for 2022, which we will continue share over the next few weeks. They cover a wide range of topics, from affordability solutions to migration patterns. You can watch all 22 Opportunities for 2022 here.
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