Sounds like the title of a university thesis paper? Of course not.
But just like research or a dissertation that requires seriousness and thorough assessment, the recent topic about single-family homes is something that deserves the same amount of attention…at least as far as the pandemic and the real estate industry are concerned. All our lives, we were taught to believe in the perfect timing. Everything will happen in its own time. All things have their own moment to shine and be noticed by the world around them….that moment might have just arrived for the single-family homes.
The coronavirus pandemic has been getting many Americans to rethink and reflect on the kind of home lifestyle they really want. Apartment living in central, densely populated urban areas is slowly losing its charm as residents are subject to building restrictions and risk coming into contact with people who might be infected by the virus.
This pandemic paves the way to highlight the desire for space and privacy thus directing the attention to single-family homes as one of the smartest real estate investments nowadays. Buyers and renters are now seeking more for square footage, privacy, and autonomy in the wake of the coronavirus pandemic.
Real Estate IQ, serving its purpose as the No. 1 in Deal Finding, explores the anatomy and innate charm of single-family homes and explores the reasons why it deserves all the attention it’s enjoying these days.
But why the hype?
Polling data suggests that nearly one-third of Americans are considering a move to less populous areas, and in some regions, they are already relocating. Between March 15 and April 28, moves from New York City to Connecticut, for instance, jumped 74% compared to the previous year, and the Hamptons have already been crowded with New Yorkers leaving the city.
The emerging interest for space and privacy-and for control over who comes and goes from one’s home-is stronger than ever, making single-family homes a timely and smart investment these days.
Expectedly, single-family homes in the post-Covid era will prove to be a more attractive kind of living arrangement. Conveniently in this setup, there will be no board members imposing rules on how you live. Outdoor space can be enjoyed freely with your family, and no one is there to enforce social distancing. If you want to sell it or rent it, you only need to make that decision yourself without consulting anyone.
Single-family homes in suburbs just outside major cities offer particularly good opportunities to make a strong return on investment. Also on the West Coast, there has been a sudden surge in interest about single-family rentals, as wealthy Americans have been doing acid tests to a more suburban lifestyle amid the Covid-19 crisis.
This pandemic paves the way to highlight the desire for space and privacy thus directing the attention to single-family homes as a smart investment these days. On a positive note, apartment living is also not losing its luster entirely. High-end, full-service-style condominiums that go the extra mile are having new measures put into place to protect residents. These developments will surely appeal to the buyer’s eyes.
The Charm of Single-Family Properties Post-Covid
It’s very interesting to note that even before the outbreak of coronavirus, demand for single-family homes was already high, and some real estate experts expect that the current pause on much of the buying and selling in the U.S. will lead to pent-up demand post-Covid.
From an investment standpoint, the value and desirability of a single-family home have never wavered particularly in a city that is highly dense and populous. Investing in single-family homes not just on the outskirts of cities but within them could lead to strong returns.
Since many boards and homeowners’ associations in apartment buildings are restricting visitors and services, and curtailing buyers’ ability to see units for sale, the greater autonomy offered by single-family home living will become more of a crowd drawer.
In the wake of the pandemic, urban-dwelling millennials who make up the majority of the buyers now are expected to start looking for more square footage in the suburbs but are more likely to rent than to buy, opening up opportunities for investors to earn rental income.
Uncertainty of the current world situation is what makes people more obliged to rent, not knowing where the job market might land them. Ultimately, millennials might want to have more space, but they don’t want the responsibility of owning right away. So it’s a pretty, fabulous time to move money into real estate investing, as opposed to financial stock markets.
South Florida could be an example of a promising market for investors, as people from the Northeast are seen to head south seeking more spaces and waterfront living. Florida’s lack of income tax and lower property taxes are also a major draw for buyers from high tax states like New York, New Jersey, and Connecticut.
Also, we are expecting that independent homes with swimming pools will attract more and more attention. Earlier this year, the price of single-family home rentals increased by a lot, especially waterfront homes. Although considered expensive as an investment, it’s still seen as worthwhile because owners do get a lot of rental money per month, and we don’t think prices will go down.
In some parts of the country like Palm Beach, Florida, demand is higher for houses than for condos, particularly from buyers with young families seeking private beaches and more space for their children. Supply and demand sometimes make a specific area a safe real estate investment because their inventory is on the low side but still able to get an unusual demand.
Hot-Button Features of Single-Family Homes
Now, let’s talk about the anatomy of these “rising star properties” and what makes them smoking hot in today’s real estate market. Investors should consider which property features will be especially in demand, given the way the coronavirus pandemic has altered the Americans’ ways of living and working.
First and foremost, outdoor space, for example, will be a more appealing feature than ever before, and having a dedicated office for working from home will definitely be a top priority. Personal outdoor space will provide homeowners the peace of mind to know someone else won’t be violating social distancing protocols, as well as the comfort of knowing that whatever you may touch is your own and won’t be contaminated by the outside world. Having private outdoor space is going to be perceived as a greater luxury, whether it be in the form of a deck of an apartment or a garden associated with a house.
Investors should also look closely at properties in gated communities, where the sense of greater security will be irresistible to buyers. Security will now become an utmost concern for many interested homebuyers. When we start talking about the high end, buyers are really going to start looking for gated communities, People are also very focused on land, and they want privacy and swimming pools. They’re going to change their lifestyles, with a lot more working from home, and if the world pandemic were to come back and persist, many people would want to feel as though they are prepared for the worst and their home can be their safe sanctuary.
A quick turnaround of events due to the pandemic might really be a total shakedown for some properties and investment schemes, but as they say, there is always an opportunity for every adversity. In this case, single-family homes might be the clear winner for the time being. We just have to deal and adjust with the changes happening right now even for the ones to come.
After all, everything has its own shining moment and we just have to enjoy the beauty of single-family homes while it spends its time on the pedestal of real estate stardom.
Source: www. forbes.com
Disclaimer: The blog articles are intended for educational and informational purposes only. Nothing in the content is intended as legal or financial advice.