Despite a gradual return to the office for some employees and a renewed appetite for city living, suburban homes remain in demand across the U.S., according to a report Tuesday from Realtor.com.
Throughout the pandemic, home sales across the country’s suburban enclaves have skyrocketed as residents seek out easy access to the outdoors and larger properties. In fact, the number of home buyers shopping across the country’s leafy suburbs has surged 42.1% since the onset of Covid-19, the online real estate hub said.
Their popularity doesn’t look set to dissipate any time soon. Suburban homes accounted for 62% of online home views on Realtor.com in September, compared to 38% for listings in urban areas.
“The suburbs have always attracted home buyers looking for more house for their money, but recent data reflects just how much suburban competition has intensified. With the rise in long-term remote work options and downtown rents making a rapid comeback, suburban vs. urban housing dynamics are shifting,” Danielle Hale, Realtor.com chief economist, said in the report.
“From inventory to time on market, recent data shows suburban buyer activity has accelerated at a faster pace than in urban areas,” she continued. “Notably, the price premium is shrinking between notoriously expensive urban housing and suburban for-sale homes, typically known for more bargains.”
When it comes to supply levels, the continued preference for suburban living is underlined by the sector’s lower levels of stock. While inventory is lagging across the board, the number of homes in the market was down 13% annually in the suburbs in September and 8% in urban areas.
As a result of the stiff competition, prices are being driven higher, faster, in the suburbs, and has pulled down the urban price premium to 7%, from 10% in 2019, the report said.
Mansion Global is owned by Dow Jones. Both Dow Jones and Realtor.com are owned by News Corp.