Moving Out Of The City

Moving out of the big city might seem like a funny thing to discuss, but it’s not. 

A New National Trend In Real Estate

So, how is this new work environment impacting the real estate market? Please remember that all real estate is hyper-local and markets can vary from one town to another. The COVID pandemic has changed this in some ways and created a foundation of similar circumstances across the nation.

Neighboring towns can have many different trends and demographics. With that said there is a new emerging trend in many real estate markets. And it is not only hitting the largest big cities but it is also hitting the local central hub cities too. 

This article looks at the current national trend of people moving out of the big cities.

When Moving Makes Good Sense

In the most populous cities, people are finding they do not need to live in a small efficiency apartment for thousands each month. As long as they have an internet connection they can live anywhere they want.

Why wouldn’t a telecommuter pick a lovely 3 bedroom home on a lake over the cramped apartment in the city when the payment is darn near the same?

In The City Or Out Of The City A Cost Comparison

In some instances, people are finding that a 3000 sq ft home costs them less than the condo in the cities. Let me give you an example.

As you can see from the cost estimates the Park Place Minneapolis condo unit will cost you approximately $1863 per month. Compare that with the Riverfront home in Big Lake at approximately $1570 per month. Or the lovely home in Avon on Lower Spunk Lake at $1902 per month. You can start to see why people are taking this opportunity. Many have caught that it is now a possibility and are looking into the potential benefits of making their move.

For More Space

If you own your own home you can have hobbies and work on projects. If you are a gear head as well as a computer tech rebuilding the carburetor in your living room might not be ideal, for you or the landlord. Yet if you own a place out of the city garage space is not at a premium.

There are even homes with pole sheds that make the perfect place to tinker without having to leave your car outside. There are several well-priced homes with both available for buyers now.

Moving out of the City to invest in your future

On top of the other reasons people are moving out of the big city, now is the best time to invest in property. Interest rates are at an all-time low and you as a buyer have never had more buying power.

That money you have been spending to help their landlord buy the building can easily go towards buying a home that will give you the benefit of having made all those payments over the years. After the home is paid off, you own it.

Property Investing Out Of The City

A Complete Reverse

We can see the rents in some cities reducing down to affordable rates again, manufacturing move back to population centers (as you can not work remotely on an assembly line) As more and more white-collar workers move out of the population centers vacancy will increase and rents will decrease as landlords compete for the available tenants.

This pattern will continue until market forces change or the vacancy rate becomes stable again. Here are some recent stats from New York there is also evidence that taxes might be having an effect too. There are multiple causes and lots of personal reasons. For some, it’s as simple as they don’t want to have their office in their bedroom anymore. For others, it is the opportunity this new way of doing business has opened up for them to telecommute. 

People are finding they do not need to live in a small efficiency apartment for thousands each month. As long as they have an internet connection they can live anywhere they want.

House listings here