Due to the pandemic and fears of contracting the virus, New York City’s residents are seeking homes with more space. Living in cramped apartments with shared amenities is no longer acceptable for many New Yorkers, who aim to take advantage of low interest rates and declining prices to purchase larger homes in suburban regions.
Being stuck at home for months during the lockdown has led to people, especially those with children, desiring living spaces with yards, an office, as well as physical distance from neighbors. It is rare to find such properties in New York City within budget, and hence, people have resorted to looking for homes in suburbs.
Properties have seen numerous offers in the past few months, despite potential buyers not having seen them in person. There has been an increase in demand for homes located in suburbs surrounding New York City. There has been a surge in the number of offer that have been made for residential properties of all price ranges, which has not been experienced in recent history.
In July alone, there was a 44% increase in the number of residential properties sold in suburban counties in comparison to the same month in 2019. Simultaneously, Manhattan saw a 56% decrease in the number of properties sold in July. One real estate agent claimed that about 60% of potential buyers reside in the city and are looking for properties in suburbs.
There still remains uncertainty regarding when things will return back to normal. Many companies have decided to continue with remote work for the foreseeable future. As a result, a major portion of people working from home have made the decision to move from the city to less populated areas.
Although New York City’s residents have moved from the city to suburban areas for years, the demand for properties in such locations has not been this high. Open houses have received an unprecedented number of offers, and people are willing to pay over the asking price as well. It can be said that this number will decrease once a vaccine is introduced, but this prediction lacks supportive evidence.
Many moving companies have also stated that they have been unable to keep up with the increasing demand. Some experts believe that people who have left New York will eventually return once the pandemic situation improves. However, this may only be applicable to those who temporarily moved to second homes to enjoy more space while being confined to their residences.
This increasing demand is good news for those who are looking to sell their suburban properties, as well as for those looking to move to the city. People who have secured homes in suburban locations wish to sell their urban properties as soon as possible and are likely to accept lower prices as well. Those who want to sell their suburban houses can make use of the increasing demand and ask for much higher prices.