Is Now a Good Time to Move to a Small Town?
It’s clear that the coronavirus pandemic has likely changed our lives forever, but thankfully, it’s not all for the worse. More and more companies are reporting that their employees are happier and just as successful working from home, putting the need for daily commutes and 9-5 workdays at the office into question for good.
Those of us with the luxury of being able to work remotely with ease just might get to keep doing so, which means, living in close proximity to the office no longer has to be a priority. That means the seaside cottage or idyllic farmhouse of your dreams might be more in reach than you think.
“We’re in a very unique time where people who can work remotely can actually live where they want to live,” says Chris Leavitt, executive director of luxury sales at Douglas Elliman, who moved from New York City to Palm Beach 15 years ago. “The ability to work remotely is really changing, and major companies, like hedge funds, are moving here at record pace, creating this domino effect that has led to a whole movement to south Florida. It’s also just a really beautiful place to live.”
Leavitt says the spring saw a massive influx of buyers in Palm Beach who were looking for a safe haven that was open and full of natural beauty but also had all the resources they needed for an exciting social life. Although south Florida’s busy season is between November and May, he and his team are expecting a robust summer, as there is a high rate of people booking rentals for the season to give them time to tour houses and figure out exactly the right home to purchase.
“We’re having an unprecedented summer already,” Leavitt says. “This time of year, things usually slow down and shipping trucks come to take all the fabulous cars back to New York and Connecticut, but you're not seeing that right now. As restaurants and stores are beginning to open back up, we’re seeing how many people really are still here patronizing these places.”
Research from Zillow economists show this trend may not only be in Palm Beach, as more and more people consider making the transition from big city life to more suburban areas. A survey conducted by the real estate database earlier this month found 75 percent of Americans working from home due to the coronavirus say they want to continue doing so if possible, and two-thirds say they would consider moving if they were given that flexibility.
“There are really low interest rates right now, and people are taking the long view to lock in a mortgage that will save them hundreds of dollars a month,” says Jeff Tucker, an economist for Zillow. “We revised our forecast to be less pessimistic than we originally expected, and our data is showing home sales seem to be about back to where they were a year ago by late May. That suggests the housing market seems to be one of the strongest sectors of the economy in terms of rebounding from this recent recession.”
While those with a secure income and assets can certainly benefit from the low mortgage rates and the freedom to purchase a house outside a specific radius from their office, there are some things to consider when deciding if you should make a full-time move or simply buy a second home.
“It depends on how much you personally value the amenities in a suburb versus a city,” Tucker says. “Suburbs offer you a bigger house, a yard, and less noise, but I think what people miss is access to amenities that require density to function.”
Tucker says it’s also important to consider what your commute would be like, even if you’ll be going in more occasionally than you’re used to. However, a long commute may be worth it once or twice a week for more square footage and private outdoor living space.
“At the moment, I think people might be surprised how much demand there still is in the real estate market,” he says. “ A lot of people that aren’t involved in real estate are assuming the worst and that they won’t get a good price. What we’re seeing is someone, even in a big city, should have no trouble selling at a really reasonable price if they are taking this opportunity to move away.”
Tucker says that he’s seeing more traffic on all the listings across Zillow’s database, both in suburban and urban areas, which could mean more people are considering taking advantage of a newly remote job, whether that’s finally getting the quiet seaside home of their dreams or moving up to the big city in hopes of exploring all its wonders one day soon.
“Buyers have more options than ever to pick somewhere that will enhance their quality of life rather than being dictated by where we work and the job opportunities around us,” says Leavitt. “It allows us to ask ourselves where we will actually be happiest.”
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