By now you have probably seen many headlines over the past two years highlighting the fact that many Americans have been moving out of the big cities and into suburban areas offering more space. While this is true in many cases, the data may show something different. Overall, the pandemic and resulting explosion in remote working environments has cleared the path for many to relocate. Although these have certainly been major factors in the market, recent U.S. Census data tells a different story.
A look at the U.S. Census data
As of data released on November 17, 2021, roughly 27.1 million Americans reported living in a different residence than a year earlier. This figure is down from the prior year when 29.8 million Americans reported living in a different residence. In fact, these findings represent the lowest rate of movement recorded by the bureau in 70 years. In other words, this figured equated to an 8.4% mover rate.
Although the pandemic has certainly complicated things for many Americans, some of these trends have been taking place even before the pandemic. Here are a few of the most common factors being seen in the market over recent years:
- More older homeowners are aging in place: A higher percentage of older homeowners are opting to remain in the homes where they raised their families.
- Younger buyers are opting for more space: As opposed to buying smaller starter homes, younger or first-time home buyers are opting to buy homes with more space.
- Longer home ownership expectations: As a result of buying larger homes, younger homeowners are expecting to stay in their homes for 10 years or more. (This is significantly longer than prior generations.)
- A tight housing inventory: Tight inventories of homes for sale throughout the country is making it more challenging to move, even for Americans entering a different stage of life.
Summary
Although factors such as remote working environments have certainly removed boundaries for where Americans choose to live, the overall moving rate continues to decrease. Given the red-hot housing market, this may seem counter-intuitive. With this said, it is also important to remember that the vacation or second home market has also played a significant role in the housing market. In particular, areas such as South Florida have seen robust growth in the vacation home market. Are you considering buying a property in South Florida? We can help!
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