Interest In Rural Areas Rise Along With Home Prices
Median sales price in homes in rural areas nationwide increased by 11.3% year-over-year for a four-week period ending on Aug. 2. There was also a 9.2% increase in the median sale price for homes in suburban areas.
While urban areas did see a 6.7% increase, homes in rural areas still showed higher price growth than both urban and suburban areas from April 2020, according to a Redfin report .
"Now we're seeing concrete evidence that rural and suburban neighborhoods are more attractive to homebuyers than the city, partly because working from home means commute times are no longer a major factor for some people. And due to historically low mortgage rates, interest is turning into action," said Redfin economist Taylor Marr. "There will always be buyers who choose the city because their jobs don't allow for remote work or they place a premium on cultural amenities like restaurants and bars—which will eventually come back—but right now the pendulum is swinging toward farther-flung places."
According to the report, the COVID-19 pandemic is responsible for 13% of homebuyers searching for homes in different areas than they had originally planned on. Redfin polled 140 buyers, asking them what best described where they were searching for a home before the pandemic and what best described the areas they are now searching for a home.
"Most (59%) respondents indicated that they're searching for a home in the same type of area as they were before the pandemic, with the most common combination of answers (30%) being suburban before and suburban now, though those respondents are likely searching in a different suburb or an entirely different metro area," Redfin determined.