The coronavirus outbreak may continue to drive the need for affordable living and larger homes.
It has been more than a year since the coronavirus (COVID-19) first struck the United States. Since then, the pandemic has made its presence known left, right, and center. From the economy to recreation, nearly all aspects of life have been impacted by the novel disease.
But among the chaos, the U.S. real estate sector has remained unaffected for the most part. In fact, it has grown in an astounding fashion.
Despite seeing an initial period of inactivity, the coronavirus real estate has thrived during COVID-19. This heightened activity has been noticeable throughout multiple segments of the industry, with different aspects influencing their staggering growth.
Inmigration to different states has proven to be one such factor.
Inmigration Was a Significant Driver of Real Estate Growth
Due to unprecedented lockdowns and unforeseen situations, the coronavirus housing market struggled during the first few months of 2020. But as the medical, commercial, and public sectors learned more about the pandemic, the restrictions around real estate also relaxed.
It was during that time in mid-2020 when aspiring and existing homeowners started finding a home away from home. For some, the ability to work from home (WFH) acted as their main motivation to change their permanent address. For others, the need for at-home recreation during social distancing measures became a priority. Several families also chased the objective of living in larger spaces in order to create multi-functional rooms.
As a result, states with lower costs of living and affordable housing took centerstage for many families. This made way for an increased level of activity among factors such as competitive inventory and higher prices.
But residential affordability wasn’t the only aspect that drove the decision-making factor for homeowners. For many, states with nicer climates and business-friendly measures also became the stars of the coronavirus real estate market.
Tennessee Ranked on Top for Do-It-Yourself Movers
During the restrictions for social distancing and safety measures, do-it-yourself (DIY) measures garnered the utmost attention across various segments. DIY moving wasn’t far behind. In fact, many homeowners took this route while navigating through the coronavirus housing market for their move to remain affordable.
According to a recent study by moving company U-Haul, DIY movers in 2020 seemed to follow a set pattern. Instead of moving to expensive states such as California, they prioritized finding homes in affordable areas such as Tennessee. In fact, Tennessee also ranked as the top state for in-state migration by the company’s clients.
Apart from affordability, this trend indicated various other aspects that relate to business-friendly governments and the absence of state tax. As mentioned above, this also remained in line with the overall real estate statistics seen in 2020.
As a result, the coronavirus real estate market drove those looking for affordability towards such states. Other than Tennessee, this put states such as Texas, Florida, Ohio, and Arizona on top of the list of DIY movers. However, those who weren’t moving into homes all by themselves also preferred other areas.
Affluent Home Buyers Chose More Expensive Properties With Different Perks
While those using services such as U-Haul put accessibility front and center, the rich and wealthy looked for other factors. Out-migration was only one of the options, and many took the route of moving within their current state.
Aspiring homebuyers with deeper pockets looked for more square footage, larger yards, residential recreation, and secluded living. In states such as New York, this drove attention away from cities and towards vacation hotspots such as the Hamptons. But in other states such as Connecticut, this drove city-dwellers towards residential suburbs.
The coronavirus housing market for those with more accessibility also focused on areas that aren’t as densely populated. This also put states such as Wyoming on the real estate map and drove people towards available local listings.
Overall, the phenomenon of out-migration from different states fueled the real estate market to a great extent. But as the basic driver behind these movements, COVID-19 also influenced local markets and movers. As the sector maneuvers through 2021, factors such as low mortgage rates and competitive inventory may boost it further.