I’m a Real Estate Agent: Here’s Why All of My Clients Are Moving Back to the Suburbs
In recent years, there has been a noticeable trend of people moving from larger metro areas to the suburbs, less densely populated areas and even rural regions. According to a report from the Pew Research Center, “About one in five U.S. adults now express a preference for living in a city, down from about a quarter in 2018. The share of Americans who would like to live in the suburbs has increased from 42% to 46% during this time, while preference for rural areas is virtually unchanged.”
Check Out: 5 Types of Homes That Will Plummet in Value in 2024
Read Next: 5 Unusual Ways To Make Extra Money (That Actually Work)
Of course, there are many factors at play, which we’ll discuss below, but it’s important to note that many real estate agents have seen the real effects of this change and provide helpful insights into this phenomenon. Read on to see what real estate professionals are saying.
The Pandemic That Changed Everything
Although the change in living preferences seems to have started as early as 2018, we want to point out perhaps one of the most recent major influences on migration trends leading people away from cities: the COVID-19 pandemic.
In fact, the COVID-19 pandemic has played a huge role in accelerating this trend. With the rise of remote work, many individuals and families no longer found it necessary to live close to their workplaces. The sharp rise of remote work meant people were no longer tethered to places because of employment.
Chelsea Werner is a Global Real Estate Advisor at ONE Sotheby’s. She has a slightly different take on how COVID impacted people’s preferences for the suburbs, “I always say I don’t think COVID changed people’s plans to move to the suburbs for the most part, but it definitely accelerated a lot of people’s timelines. A lot of my clients planned to leave the city at some point, and now, with a more flexible office culture, they have been able to do so faster than they originally anticipated.”
The Rise of Remote Work Influences Location Preferences
A survey by Upwork revealed that, as early as 2020, remote workers were using this opportunity to move to more affordable housing. The report indicates, “There is a clear rationale as to why the ability to work remotely would lead people to seek out the lower cost of living places and leave high-cost-of-living places and that “the most expensive places have seen the biggest decline in demand, while the lower cost of living places have seen stronger demand.”
Brian Durham is the Vice President of Risk Management and Managing Broker at Realty Group LLC and Realty Group Premier. He says, “Without worrying about long commuting times, they (remote workers) wanted to find homes that offered larger yards for family and pets or larger floorplans offering space they could use as a home office.”
Big Cities Are Getting Expensive
Americans are leaving big cities en masse. The U.S. Census Bureau reports that places like New York City, California, Illinois, and Pennsylvania are steadily losing residents. Just last year, New York alone lost 80,000 residents while rent prices continue to skyrocket. Sunny Zachi, a Licensed Real estate Broker at Alpha Properties, told Fox News, “Prices are definitely up. In the last two years, I would say they went up a good 30 to 35%.” While many agents have reported that rental price increases for New York City apartments have jumped by double digits when compared to the year before.
Quality of Life Matters
Other real estate agents note that their clients are drawn to the appeal of a quieter, less hectic lifestyle, which has driven many to reconsider suburban and rural living. Liam Gretton is a real Estate Agent in the U.K. and notes similar trends across the pond, ” As a bespoke estate agent, we have observed a trend within our client base: a growing number of people are choosing to move back to the suburbs.” Liam also says, “Additionally, suburbs often provide somewhere to live with a lower crime rate and better schools, making them attractive to families seeking a safe environment for their children. Finally, the appeal of a stronger sense of community and access to local amenities, such as parks and recreational facilities, is drawing people away from crowded city centres.”
The Bottom Line
The combination of high urban housing costs, the rise of remote work, and a desire for a better quality of life are primary drivers behind the migration to the suburbs and less densely populated areas. As these trends continue, it’s likely we will see further shifts in living preferences, though the “return to office,” movement could bring people back to the cities sooner than later.
More From GOBankingRates
Barbara Corcoran: 3 Cities To Invest in Real Estate Now Before Prices Skyrocket
This is The Single Most Overlooked Tool for Becoming Debt-Free
This article originally appeared on GOBankingRates.com: I’m a Real Estate Agent: Here’s Why All of My Clients Are Moving Back to the Suburbs
