If you could live anywhere, where would it be?
This question – once thought of as a hope and dream – is generally within grasp today. The pandemic has allowed more people than ever to decide how and where they want to work – in-office, long commute, no commute.
Many of us have spent the last couple of years – sometimes cooped up in homes – pondering the possibilities and saving for the next move. Having likely stowed thousands of dollars over the past two years on all those unpurchased macchiatos and martinis or for commuting and clothes – now may be the time to cash in on those hopes and dreams.
One recent survey shows 39% of Americans are thinking about moving elsewhere in the U.S. this year. And as a large majority around the world are working remotely to wait out the effects of Covid, the World Economic Forum projects about 34% of the global workforce will become permanent telecommuters this year – compared to 3.6% who worked from home at least half-time pre-pandemic.
More people are moving to lifestyle destinations – the Carolinas, Idaho, Texas or other typically outdoor-friendly locations that are further from urban centers. What once was a long-distant plan for retirement is now becoming a goal far sooner for families and couples seeking space to spend more quality time with friends and family, as well as get more home for the dollar and live life at a less frenetic pace.
While homeownership is important, households are no longer confined to their existing living situation. That along with greater certainty over the office/home balance and employer guidelines, people are either embarking on – or making plans for – their next big move.
Experts call it a lowering of “barriers to exit” from high-cost cities and certain suburban areas. All that is required, it appears, is effective Wi-fi and robust hardware in the new home along with a decent salary to live a more fulfilling life.
Affordability is a real concern for many of us – not just single-family house or condo expenses but everyday costs from groceries to gas. For sure, the biggest investment – the home – is at the core of this concern and living in a region of the country that is more affordable has its long-term financial benefits.
We are witnessing a dramatic change in how consumers want to live … and where. While living in the big city is appealing to many (including myself), there are still more who are ready to embark on a new journey in areas that were traditionally seen as vacation spots or retirement destinations.
Lennox Scott, CEO of John L. Scott Real Estate, calls this time in our lives The Great Reshuffle, where there is a greater ability for people to fit work into their lives rather than having lives squeeze into their work.
The pandemic effects and intense market competition have redefined what a dream home could be. Buyers are prioritizing a lifestyle market and are willing to compromise on home features to live in their preferred location. In 2011, 77% of U.S. buyers purchased a detached single-family home; 10 years later that figure was 82%, as buyers chase more square footage for remote work and home schooling.
In addition, out-of-market buyers are leveraging equity when selling their home to make their next house their dream home. The threat of higher interest rates this year may push a percentage of buyers to the sidelines amid affordability concerns.
More buyers are also prioritizing multi-generational living. New construction homes are including an area for older family members to join the primary household, and existing homes on larger lots are expanding their footprint with detached accessory dwelling units (DADUs, aka mother-in-laws).
Many other professionals are pushing up their retirement date by a few years as they shift from office to home-office environment and ease out of the daily rat race.
People are re-evaluating the function and features of their houses with the increase of time spent at home. Kitchens are still king, but there has been more emphasis on outside living areas featuring second kitchens and lounge areas with a firepit and big-screen TV. (Sounds great!)
A dream home may be closer to reality than you think.
If you are considering moving further afield, contact me for insights into the selling and buying process. Plus, let John L. Scott’s relocation team help seamlessly coordinate the transition.