Moving out of the big city might seem like a funny thing to discuss, but it’s not.
Today many people are having this conversation and a lot of the reason why they are able to talk about this possibility is due to changes related to COVID.
The Big City Exodus
Just a few short years ago big real estate sites were writing articles on moving into the big city, but this has now changed. Moving out of the city is something more and more people are doing everyday.
This past spring when our Governors put us in lockdown companies started to change how they function. They had to change how they did business and mostly how they interact with their own employees and customers. More and more people now wake up at work.
Many companies found that a telecommute was a good workable solution for the employee and that it made good financial sense for them too. Some companies are now making these situations permanent. This new work environment gives more people the freedom to move out of the city.
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.
The Health Benefits
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
With an apartment, there is no paying it off. The only changes in your rent will be increases. Many who moved to the big city for the best pay and career track, are finding out their job and career can live in the country or a small city/suburb. In fact, your company’s management made it mandatory this year.
So here is an interesting thought, How long before the companies go completely virtual and no longer need their large buildings? We will have to wait and see. Maybe this is something that the new return to US manufacturing will replace.
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.
If you are relocating to central Minnesota check out all the wonderful reasons to love St Cloud. It is a beautiful area full of things to do and lots of great houses. I would welcome the opportunity to help you find your perfect place here. Browse my website for more information about buying or selling a home, or property in the Central Minnesota real estate market.
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