The beginning of the COVID-19 pandemic prompted large numbers of city dwellers to reconsider their housing choices, with many opting to move out of their cramped apartments, and into houses with outdoor space and parking. People bought homes for other reasons as well, and before long, there was a serious lack of remotely affordable housing in many parts of the country.
Now, a few years later, the supply and demand for housing has become far more localized, with prices continuing to rise in some areas, and tapering off in others. In fact, a recent analysis from Realtor.com makes the case that the concept of a “national housing market” no longer exists. Here’s what to know.
What happened to the national housing market?
The combination of inflation and rising interest rates has resulted in hyperlocal home-buying trends, which make it nearly impossible to speak in general terms about a national housing market. “Every single city and every single street across the country has its own unique housing market,” economist Ali Wolf told Realtor.com.
Think in terms of local housing markets
Here are a few things potential homebuyers should consider when deciding where and when to make a purchase, according to experts at Realtor.com:
Consider the region
Currently, the regional housing markets in the Northeast, Midwest, and the Southeast (Florida, in particular) continue to be strong, with smaller cities that still have affordable homes faring the best.
Broaden your search
If you have your heart set on a particular neighborhood, suburb, or block, but find yourself priced out, don’t lose hope completely. Instead, zoom out on the map, and widen your focus to surrounding areas. With housing markets this localized, even a few miles can make a difference.
Be realistic and open to compromising
Which is more important to you: Having a bigger house with more property, or being closer to amenities and action? If you’re on a budget and have your sights set on a particular city or town, chances are you can’t have it both ways.
Look for more compact houses that are closer to the downtown or Main Street area where you’d like to live. Or, if your priority is having more property, go in with the understanding that you’ll probably have to be farther away from the action.
