Location, location, location may no longer be the golden rule in the real estate industry when it comes to finding attractive and affordable markets.
Where did you imagine yourself as an adult? Perhaps you’ll be in a penthouse high above the metropolis, with floor-to-ceiling windows and a shimmering skyline stretching to the horizon?
For a growing number of homebuyers, that vision is being replaced by suburban homes they once considered boring. This is due in part to higher prices in first-tier coastal cities, favorable financing options in smaller markets, and the increased flexibility of remote work.
Simply put, today’s buyer decisions and market realities are driven by affordability, not location.
New population estimates show Americans are still moving away from large coastal cities in favor of mid-tier Sunbelt suburbs like Raleigh, North Carolina and Dallas, with suburbs growing faster than central cities. They want affordability, space for remote work, and sufficient space, suggesting that these priorities, which have remained largely unchanged since the pandemic, are structural rather than cyclical.
“Buyers thought they could sell a two-bedroom condo in Northern Virginia or New Jersey for the same price as buying a four-bedroom home in one of the suburban communities around Raleigh,” said one broker-owner. “After the purchase, they would have a lot of money left in their bank account.”
In practical terms, this means that despite the increased power that comes with entering the market, buyers may need to think about what they really need and where they can compromise to make the numbers work. Agents who can help buyers bridge the expectation gap now earn commissions.
Here are some recent articles by Inman contributors. Designed to help you understand the market and communicate through every trade.
How 8 Words Created a Binding Contract
Two text messages. 2.8 million dollars. Written communication protocols are a signal of professionalism that helps you stand out, writes attorney Kelly Rees Murray. Implement these five easy fixes to keep your emails and texts contract-free.
What to say when a customer asks about the data center down the street
As more data centers move into residential neighborhoods across the country, more buyers come with questions, writes new Inman contributor Elizabeth Quinn. Real estate professionals should answer:
Why spring housing rebound didn’t happen (and how to overcome what happens next)
In the face of today’s market, Eric Bramlett writes, clearly manage expectations, stay close to your customers, and build long-term trust.
Email Christy Murdock
