The real estate industry is incredibly dynamic and constantly changing through time. The last few years have made us stay within homes for such a long time that a lot has changed how we perceive living. The pandemic has put some of our priorities into sharp perspective and allowed us to take a second look at how we live our lives today.
Most households have grown to recognize the importance of good housing. This was due to being forced into those cramped homes for extended periods during the quarantine.
But, as we prepare to start our journey into the post-pandemic years, a lot has changed. How most of the population views housing has changed greatly, and the pandemic has affected many aspects of the economy. This impact can be seen in the moving trends in 2022, where many reasons are attributed to this shift.
1. Mass unemployment
One of the most unfortunate outcomes of the pandemic has been a massive loss of jobs. Unemployment was at its highest as businesses were severely impacted. This led to many downsizing across the board, making it difficult for people to find the right place with a good budget.
The loss of jobs harmed the real estate market in most urban regions. Many moved away to areas that could provide better employment and cheaper living options.
This has led to larger-scale relocation for many individuals and families who may have found it difficult to stay in these spaces. This situation is still not fully rectified. More individuals are likely to move out of the urban spaces in time, where the cost of living is extreme. This has caused an impact on the moving trends in 2022, where there is an outflow of people from urban spaces.
2. Need to take care of family
The pandemic was terrible for most individuals, as the younger generation was stuck at home. However, the older generation was very easily affected by the disease, and their symptoms were much more dangerous. Given this situation, many families realized that the only way to ensure they are safe and taken care of is to move them into these spaces. This has led to a larger-scale relocation of families close to their extended relatives to take care of them.
3. WFH standardization
Work from home has become the primary tool many businesses use to continue functioning without much of an issue during the harsher years of the pandemic. Working from home may have been odd and uncomfortable initially, but it has grown to be a viable option for many businesses. It is great for productivity and can allow employees more freedom while keeping up with organizational goals.
With the many benefits of WFH, many organizations have gone entirely to WFH and removed physical needs for business. The work takes place on online platforms, and it can be done from wherever. WFH is great as it is also conducive to individuals who may like to travel. Now that a physical office is not considered a need by the business, there is no need for individuals to live in urban spaces, and they can enjoy living life in more suburban areas while having a good job at the same time. This is another reason individuals have been moving away from the city spaces and into suburban and distant spaces. It can allow many to live their Digital Nomad dreams, which are also very valuable. But WFH has become a reason behind the outflow of people expected in the moving trends in 2022.
4. City to Suburb Movement
With the pandemic making cities and densely populated areas very dangerous, there has been a large-scale migration away from these urban centers such as New York, San Francisco, and so on. Although some assume that this may rebound in a few years as the pandemic passes on, others estimate that this slowdown in city growth was expected and can continue for up to the next 10 years.
This mass relocation is one of the primary reasons behind many market shifts in real estate and has caused suburbs to grow in popularity in recent years.
5. Single-family housing demand
Another important real estate trend has been the extreme demand for single-family homes in most suburban areas. As people begin to move away from the city spaces, the demand for single-family homes in the suburbs has skyrocketed and has caused shortages in some regions. The sales of these homes have increased for several reasons, and this demand has been driven by how common work from home has become during the pandemic. A good home can go a long way in helping out people who have been stuck in these spaces.
Homes in the city regions are not affordable for most adults today, so they move to the suburbs to find a home that they can purchase and make their home., This has also caused a large upsurge in demand for homes, as most millennials are in the homeownership phase of their lives.
6. Rent increases
There have been rent increases all across the region, making rental homes difficult for individuals to live in. Most urban areas in 2022 raised the rent across the board, making it beneficial for many to simply move away from these spaces. With the growth of the suburban areas, it was a good opportunity to work from a distant location. As WFH became prominent, they could easily move away without having to live under extreme rents. This has caused a great deal of relocation overall.
7. Rental Market in Decline
As previously mentioned, extreme rent prices have made it difficult for individuals to continue living in these urban spaces, which has decreased the demand for these urban rentals. Several individuals have either moved into the suburbs, and many have moved back in with their parents. This decline is expected to continue for a few more years. It can be seen as an opportunity for other mid-sized and smaller cities witnessing an influx of relocators, who prefer these spaces as they provide better comfort overall.
8. Home prices rise
There is a clear upsurge in home prices, largely due to the previously mentioned demand increase. The supply is limited, and it will take time for builders to match the demand and get construction back on track. The pricing of single-family homes is incredibly high, making it difficult for most individuals to purchase homes. The pandemic has made the real estate market incredibly volatile, with pricings going down in the initial few months and then shooting up within a short span of time.
Moving Trends in 2022 provide an interesting picture for the future years, with numerous distinct patterns projected. These trends demonstrate how the real estate industry operates and the current situation of housing.