Real Estate After the Pandemic

Twenty-Twenty has been a year we will all remember, as a virus was able to shutdown the world and turn everyday activities into prohibited acts. As a result, the economic landscape of the globe has been shaken, especially the real estate market. Similarly to the boom of the suburbs during the mid 1900s, people are fleeing the large cities and higher populated areas for more rural and suburban areas, as working becomes more and more remote. Through the mass distribution of vaccines the pandemic’s end seems to be in site, but the state of the economy and the real estate market remains uncertain as low interest rates and record unemployment linger. An interesting article on Marketwatch.com sets forth an interesting perspective as to the real estate market post Covid-19 and what it means for home buyers. According to the article “Housing is a luxury? Here’s what the K-shaped recovery means for real estate” by Andrea Riquier, the gap between white and blue collar America has been further split due to the virus. The pandemic has forced those with means, living in affected areas, to relocate to less populated areas with less risk, individuals with wealth moving from these areas to less affluent places have driven prices to an all time high. Riquier included a statement from the CEO of Redfin, Glen Kelman, to support her claims as he states “, I definitely think the pandemic widened the gap between the haves and the have nots.” This sudden increase in housing prices means that those who find themselves more average when it comes to wealth, will likely have a harder time affording a home. Now that we’re a few months into Twenty twenty-one, it seems as if this pandemic is not here to stay, but the affects it had on the economy may be. One thing is for sure, businesses and corporations now realize working remotely is a viable option to those who wish to do so and as such the big cities that thrived due to businesses will likely see an adjustment which will continue to take hold of the real estate market.