Realty Get Real: Suburbs and City Thriving

Are People Leaving Cities for the Suburbs? Over the past few months suburbs have been getting a lot of attention in media headlines. At the beginning of the pandemic, many people started to predict that Covid-19 would be the death of the American city. Local and national publications kept suggesting that the coronavirus would cause people to leave the cities for the suburbs. These publications suggested that a collapsing economy and fear of outbreaks would send people packing in droves. Even in Boston writers were suggesting that Bostonians were ready to leave city-life behind for the allure of their own backyard. 

But is there any truth to the idea that people are leaving cities to buy their own homes in the suburbs? And if there is any truth to this, why? 

Why are Suburbs Suddenly Attractive?

The reasons why some are suggesting that people are looking to abandon cities are interesting. These reasons, whether true or not, shed some light on the psychology of home buyers and sellers. They also shed light on the many ways our lives are different now that we are living with Covid-19.

Return to Family

For some, the idea of leaving the city for the suburbs is all about moving closer to their families. In the first decade of the 2000s, many millennials left the suburbs where they were to stake their claim in major metropolitan areas. However, the pandemic left many millennials reconsidering this decision. When the outbreak first began, the nation’s largest cities were the hardest hit. Most of these cities adopted extended lockdowns to stop the transmission of the virus. This resulted in a loneliness epidemic as people were no longer able to live the social lives they were accustomed to. For some millennials, the idea of spending weeks on end alone made the idea of living near or with their family more attractive. 

Millennials were not the only ones that thought about leaving cities to be closer to their families. Even Baby Boomers and Gen Xers left the cities to be closer to their families. For them, this was less about loneliness and wanting to be closer to their family out of health concerns. People with older parents or other relatives wanted to be closer to make sure they had the healthcare they needed. Something that is especially important in a public health crisis. People from all age groups were selflessly leaving their homes in cities to care for older relatives in suburban areas. 

The End of Urban Excitement

Big city real estate has always been popular for people who crave excitement. From dining, to nightlife, to professional sports, big cities offer people many things to do every night of the week. The coronavirus put an end to all of that. Even after the strict lockdowns started to relax, the entertainment options that existed before the pandemic still have not returned. Back in May, The Boston Globe wrote an article declaring that the pandemic took the thrill out of city living. Night clubs, sporting events, and bar crawls were no longer a thing. Many suggest that the new subdued city pushed people to the suburbs. Afterall, if there isn’t a lifestyle benefit to being in a city then why not have a bigger home and a smaller mortgage? 

More Space

Faced with the thought of spending the foreseeable future in small apartments, some see the suburbs as a chance for more space. During the early stages of the pandemic the world was fascinated with people confined to urban apartments. There was even a viral story about a guy in France who ran a half marathon on his balcony while Paris was locked down. While fascinating at first, some thought the idea of a backyard and open trails was a lot more attractive.

Since March real estate demand in places like upstate New York have spiked as people tried to leave Manhattan. Maine, Colorado, and Montana have also seen an uptick in interest from people who are looking for more room. Health experts suggest that outdoor activity is safer than indoor activity during the pandemic. Ditching your high-rise condo for a single-family home in the suburbs is one way to give you more access to the outdoors. 

Changes to the Workforce 

Another factor that is being cited as a reason why people are headed to the suburbs is the pandemic’s impact on the job market. First, unemployment has skyrocketed since March. Many people are out of work in hospitality, tourism, and service industries because of the pandemic. Many of these industries thrive in big cities and the people who work in them often live in cities to be close to their jobs. Now that these jobs no longer exist, many of these unemployed individuals are turning to the suburbs. 

Another change to the workforce that is driving people to buy homes in the suburbs is the increase in remote work. Many companies have turned to remote work to continue operating during the pandemic. Some think that the trend toward remote work will continue even after the virus has subsided. Many people chose to live in the city rather than facing a long commute. However, now that they work from home, it is much easier to live further away from your company headquarters than before. The truth is that for the same size mortgage you can get a much larger home in the suburbs than you can in the nearest big city. 

 Are People Really Fleeing the Cities for Suburbs?

But what does the data say about whether or not people are leaving cities in large numbers? 

According to a study by the Pew Research Center about 3% of people surveyed have moved because of Covid-19. Not all of these people have moved from the cities to the suburbs, however. Some have moved from one city to another. Some have moved from one suburb to another. Some have abandoned both cities and suburbs for more rural locales. People are rethinking where they live because of Covid-19, but not everyone is trading in their downtown apartment for a picket fence. 

The chief economist for Zillow says that there is not a mass exodus from the cities to the suburbs. There is a slight uptick in people looking at suburban real estate on Zillow. However, it is not entirely about people wanting to leave cities. A lot of it has to do with people looking to purchase new homes in both suburbs and cities to take advantage of low mortgage rates. 

Ralph McLaughlin, the chief economist at Haus also disagrees with the narrative that people are fleeing cities. He thinks that a lot of people are pointing to real estate searches as their supporting evidence, which is unreliable. Just because someone is searching for a home, it does not mean that they are buying a home. 

Even if the narrative is true, it might be temporary. Some real estate experts suggests even though some are trading in urban real estate for suburban homes it is a cyclical trend. Similar migration patterns happened after 2008 but started to reverse once the economy improved. They argue that the same is probably true for today’s real estate market. 

Headlines make it seem like cities will soon be empty like a scene from I Am Legend. However, the data suggests that the mass urban exodus is closer to Hollywood fiction than actual reality. But whether or not people are headed to the suburbs in droves, it is clear that more people are searching for new homes. Afterall, mortgage rates are at historic lows. 

So regardless of whether you dream of a downtown penthouse or a rural farmhouse, it might be the perfect time for you to make your dream a reality. Just do not buy into the hype of the headlines when making your decision. Pick the home, apartment or condo in the city and setting that is right for you. If you want help turning your dream into a reality, contact the team at People’s Choice Mortgage. We are here to help you no matter what zip code your dream house is located in.