housing market

How the Housing Market Has Changed Since the COVID-19 Pandemic

Never in our post-war society have we imagined that stay-at-home orders would be back as a thing until the pandemic, not to mention that we have to stock up on essentials in our pantries. Neither did we expect that there was so much more to that two-week quarantine we were all placed under. Undoubtedly, these lifestyle changes imposed upon us urged us to reassess our needs and how we prefer them met.

This looking-back into what we consider essential in our daily lives includes food, hygiene, health, and home upkeep products. As days added up into months, so did our frustration about the seemingly unending widespread health problem. This uncovered needs we never knew we had, which encompass the physical realm and lean more toward our mental well-being.

Back then, we couldn’t care less about the ambiance of our bedrooms or the entire house, not mindful of how much it impacts our mood and, consequently, our productivity throughout the day. That is until we were forced shut into our homes and for a significant period. Now, it is fair to say we have achieved more sophisticated criteria for a long-term dwelling.

Like in the ’08 housing market crisis, we have witnessed how much the prices of properties fluctuated since the pandemic went haywire as a response to a gush of demand and further fueled by huge liquid income deficits of the working population. This is just one of the most telling indicators of the degree of transformation the market is undergoing. The following might also give rise to long-lasting trends in real estate:

housing market

Multifunctional Space

Having been deprived of our movie nights in the theater, dinners out in our favorite restaurants, and our weekend music festival escapades, we knew we had to get creative and make do with what’s at home at some point. No wonder do-it-yourself remodeling of less-utilized rooms or furnishing one to make it more functional than ever have been on the rise lately.

The home entertainment industry consisting of subscription-based music and film streaming applications, multiplayer gaming devices, and auxiliary accessories such as ambient lighting and remote-controlled speakers owes its skyrocketing pandemic sales to this longing for a house that meets leisurely needs on top of relaxation. Disney+, which took five months to achieve a 50 million subscriber base, a feat Netflix had after seven years, is one great example.

Plug-and-play kitchen implements like espresso machines, air fryers, and sandwich makers also saw a rise in its sales during the past year. This demand surge pushed them to introduce the most seamless installation and upgrade tech for the best user experience. These enhancements to the home, although merely technological, reflect an average owner’s need for more speed as he juggles all activities into his limited space.

Returning to the Metro

What many people thought to be an abode that was spacious enough wasn’t so, after all. Having to stay indoors for abnormally long periods made them desire larger spaces to move in. Wall Street Journal was able to interview Omer Granit, a former renter in an apartment in New York, and how he moved to a cabin in the lesser urbanized regions of Colorado in the search of more expansive private space, both indoors and outdoors.

Since then, the demand for extra yard space and recreational space pulled up the prices of even decently-sized condos. This made it hard for working people like Granit to move back to the metro, considering workers are being called back to the office. This is all the more reason an income-earning individual has to be wiser with their home refinance options.

Downsizing Not an Outlier

The stressful effects of the pandemic pushed many more to adopt a minimalist lifestyle. Aside from leading a clutter-free life, more and more are finding the prospect of a tiny home attractive. The reason for this is the relatively easier upkeep of smaller houses, therefore, granting owners more time for activities they love aside from resting.

If not downsizing, a huge chunk of the millennial population has hopped onto the RV living trend as an expression of wanting to go away somewhere far from the crowded cities. There also seems to be a consensus for freedom of location, which the travel restrictions deprived them of.

Final Thoughts

Recent events reveal that the house is more than just a huge storage space or a place to sleep. It is a place to cultivate family relations and to improve oneself. And so, real estate developers can only promptly respond to these elevated needs.

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