Rental markets are declining as city dwellers flee to the suburbs with the constant work of home. Is It Time To Buy A Home?
4 min read
The opinions expressed by the entrepreneur's contributors are their own.
Something good has to come out of dark events – like the widespread and tragic loss of life we suffered during the coronavirus pandemic.
In the spring of 2020, the real estate industry, like so many others, was hit by uncertainty and a nationwide shutdown that kept us from doing our job. However, we jointly faced this with a resilience that made us even more ready to help buyers and sellers take a step. Our methods of listing and displaying homes, meeting customers, and signing contracts changed drastically once we were able to do business. But like the entrepreneurs we are, we've found a way.
The wishes and needs of our buyers and sellers have also changed noticeably. The widespread work and schooling from home has resulted in many homeowners suddenly feeling cramped in their space and needing designated areas for work and school. Others are considering working from home permanently and now have the option to work from anywhere.
Real estate leaders have worked overtime predicting the future of our industry and determining where we can innovate during and after the pandemic. And while there's still so much uncertainty, we're sure of one thing: owning a home is still a fantastic investment. Here are four reasons why.
1. Safety in the case of skyrocketing rental prices
As a homeowner, you shouldn't expect the value of your home to increase immediately or even in the short term, but it is very likely that your home will increase in value over the long term. This is when patience is a virtue. And of course that value depends on when and where you buy your home. A qualified real estate professional will take this into account in your search.
The value becomes even clearer when you compare the rental costs with those of a home over many years. Add to this the tax benefits traditionally associated with owning real estate, and there is no question that owning a home is a wise investment.
2. Working from home can be permanent
Our world has changed drastically this year and with it the view from our offices. Companies are exploring options to keep their workforce away and minimize their physical footprint while making their companies more attractive to employees who have asked for that flexibility. That makes a comfortable home with space to work and live even more important and adds another significant value to owning your own home.
3. The sudden attraction of the suburbs
In this sense, employees can no longer consider a long road when looking for an apartment. Many urban markets have seen significant migration to the suburbs as city dwellers began to see the appeal of suburbs and more affordable housing.
This certainly doesn't mean the crowds will leave the popular downtown neighborhoods, but it could mean an expansion of the suburban communities. This, in turn, could give a higher priority to the local transport projects and new developments that support these suburban neighborhoods, making home ownership more attractive.
4. Investment and emotion
Not only is it a solid investment in your future and a place to spread out, but a home can pay you back too. Should you acquire additional real estate in the future, your house can be a rental property that will significantly expand your financial portfolio.
All of these consider the financial implications of buying a home, but rarely do we talk about the pure emotion of owning a home. My parents emigrated from Poland and worked incredibly hard to buy a house and ensure a comfortable future for our family. I am always grateful to know that young Americans still see tremendous value in buying a home while sharing the same sense of pride and financial achievement. That's why real estate professionals will continue to work hard every day to open doors to buyers and sellers around the world.