Real estate’s current condition is discouraging at best. Because of the many restrictions most states face regarding the virus, most real estate agents are having an incredibly difficult time selling homes. On top of that, most people are desperately trying to become adjusted to the challenges that COVID-19 has brought and aren’t able to focus on making big moves like buying or selling a home. In addition, short-term rental services like Airbnb have taken a massive hit as municipal authorities have banned these rentals in hopes of not over-extending the city’s resources.
It is the reality of the economy that industries fundamentally change following a large-scale crisis. Whether that change is for the good or the bad depends on our response to it.
People are spending more time in their homes now than ever before. Because of that, our expectations for our homes and their beauty and functionality has increased significantly. One major way that has come to fruition is in the home office space. Once a room is delegated to storage and the occasional study space, home offices have become a major necessity for homeowners who have been forced into the work-from-home life. There are now greater desires for well-designed, functional office spaces.
All of our time spent in isolation has increased our desire for human connection rather than more stuff. As such, the market for third and second homes, as well as the luxury home market, might take a slight hit. Instead, expect an increased awareness for social gathering places in homes and a desire for clean, organized spaces. In addition, people generally want to live in health-aware places and communities — think suburbs outside of major cities like Dallas and Miami. More than opulence, buyers are looking for simplicity and beautiful functionality.
There’s also a good chance that many buyers will seek out rural or less-populated areas to live. Markets like the southeast and midwest might see a slight uptick in sales. In addition, the tiny home market should see a significant rise from millennials as people value their mobility and freedom more than ever after the restrictions that the pandemic has placed on so many of us.