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Are Urban-Dwellers Leaving the City?

August 17, 2020 by Kathy Reichle Leave a Comment

America’s big cities have for years, been drawing people in thanks to the robust employment opportunities, culture and nightlife, higher-paying jobs and the general excitement these locations can bring to your life.

The concept of heading to the office and then spending the evening exploring the city was one that appealed to many, but the pandemic is causing people to rethink their lifestyles.

After the corona-virus pandemic, widespread lock downs rolled through the U.S., heavily affecting cities like New York, which saw a tremendous toll from the outbreak.

Along with restaurants, museums and theaters closing, many perhaps indefinitely, most employers starting asking some if not all of their employees to work from home. Those factors may lead to increased home demand in suburban areas and smaller cities, and for some, perhaps even rural areas.

Working From Home Creates Residential Flexibility

There was for years discussion about companies offering more work-from-home opportunities. For some employees, telecommuting was an option, but still yet for many others, it wasn’t.

Then, after non-essential businesses were required to close down based on state and local mandates, working from home was no longer an option, but a requirement. Companies scrambled to piece together work-from-home policies, but now that we’re several months in, it’s becoming a lot smoother for many.

The vast majority of employers, according to Gartner, plan to increase their number of permanent work-from-home positions.

That means that not only will employers have the potential to save on pricey city office buildings, but they may be able to hire employees who live anywhere in the world. Facebook recently announced that they would be offering work-from-home permanent positions, but they would adjust pay scales according to location since employees wouldn’t be forced to live in the expensive Silicon Valley area.

Other Ways the Pandemic is Changing City Attitudes

It’s not just the work-from-home element that’s making some city residents rethink things.

With corona-virus came a fear of infection, and based on what we know now, shared living environments such as city apartments may up the risks. There are stairways, elevators, lobbies, and even air conditioning systems that could be potential vectors of transmission for COVID-19.

During lock down, some people living in cities also started to feel that they didn’t have the yard and outdoor space they’d like, and perhaps that they were paying too much for a lifestyle that they no longer got in exchange for that price. Living in a tiny apartment can be trying even in the best of times—in the worst, it may feel impossible.

Shark Tank investor Robert Herjavec recently told CNBC he believes the coronavirus pandemic has changed attitudes about living in cities to the point that it will alter the real estate market for years to come.

He described what’s happening now as one of the biggest moves from urban areas to the suburbs since the 50s or 60s.

One Redfin study found 50% of respondents from Boston, New York, Seattle, and San Francisco said they would move if they found they had the option to work from home permanently.

New York’s Real Estate Market Is Already Feeling the Effects

According to realtors in the areas around New York, they’ve seen a tremendous increase in people looking for single-family homes in areas like Connecticut, New Jersey, and upstate New York.

That’s already taking its toll on the New York market. Apartment vacancy in June was 3.67%– a record high.

There was an 85% increase in apartments listed that month compared to June of last year.

Realtors have said it’s not just New York where people are making a move. It’s also being seen in other areas, such as California’s cities.

Competition Heats Up in the Suburbs

Some of the cities that people seem to be considering if they’re looking to move away from urban areas include not only the New York suburbs but also cities in South Florida, Phoenix, and Sacramento. Long Island and Westchester, Connecticut are also seeing a surge in demand. There are in fact bidding wars going on in some of these locations, and real estate experts say you should start looking now if you’re considering a move.

Some buyers are thinking less about the effects of the pandemic and more about moving to places that are more affordable and have lower taxes—tax-friendly states include Florida, Texas, Tennessee and Arizona.

Sellers have the opportunity to capitalize on the shift. Without a lot of inventory in many areas and low interest rates, prices are going up, some rapidly.

Buyers, along with searching for single-family homes, are looking for lifestyle features. They want the things they couldn’t get in the city, particularly as more people are spending the majority of their time at home.

These features include pools, large yards, home offices, and spaces for home gyms.

The most demand for homes is being seen in those turnkey properties, so sellers should keep that in mind.

It’s early to tell how long the move from the cities to the suburbs will continue, although some real estate analysts are forecasting it will be quite some time before cities’ real estate markets recover.

WRITTEN BY ASHLEY SUTPHIN

Filed Under: Issaquah Community Blog Tagged With: COVID-19, Homebuyers, Living in the Suburbs, Working from Home

Sheltering In Place Is Changing What People Want From Their Homes

June 26, 2020 by Kathy Reichle Leave a Comment

A flex space might evolve over the years to meet your shifting needs. GETTY

Sheltering in place during the Coronavirus pandemic has inspired homeowners to tackle home improvement projects that better suit their needs. There are many reasons to renovate that run the gamut from accommodating remote work to sprucing up or adding outdoor living spaces.

“Our homes have come under the microscope like never before during the months-long sheltering in place,” says Dan DiClerico, home expert at HomeAdvisor, an online home improvement resource. “The quarantine has caused an intense assessment of what works and doesn’t work, first and foremost with functionality, but also with the home’s overall design and aesthetics.”

The process is ongoing, he added, explaining “we’re already seeing a new set of preferences and priorities emerge as homeowners consider which features matter most, whether they’re making improvements to their existing home or looking to move to a new one.”

Updating functionality, efficiency

Smiling Mature Woman With Laptop Working In Home Office

A dedicated home office can boost productivity. GETTY

“While it’s always possible to put on an addition or refinish the basement, most homeowners have a finite amount of floor space in the home to work with,” says DiClerico. “That’s forcing some reapportioning of square footage as new needs emerge. The most obvious example is the home office—at least for those people who have the luxury to work from home. In the past, people might have been happy to work at the kitchen table or cram their office into an oversized closet.

In an era of virtual meetings, interior design for Zoom calls and webinars is uncharted territory.  “Today’s home office also serves as a public staging area, so form and function are equally important,” DiClerico says. “In homes with large master bedroom suites, many homeowners are co-opting floor space that might have functioned as a reading nook or grooming station for their newly elevated home office. Along with the essentials of a working office — desk, chair, printer, etc. — it features a personalized backdrop for video calls, say a bookcase with relevant titles or a favorite piece of artwork hanging on the wall.”

HomeAdvisor is also seeing more interest in so-called flex rooms, or rooms that serve multiple functions. “The room might be your staging area for the home office, but it also serves as the home gym, with room for the Peloton bike or yoga mat, and maybe even a guest bedroom, with the addition of a pull-out sofa and side table,” says DiClerico.

He notes that in new construction, some builders are reducing the size of the garage to make room in the floor plan for these essential flex spaces.

A focus on outdoor living

Garden Patio with fire pit and chairs

A patio provides a close connection to nature. GETTY

Staying at home is the new going out, and outdoor living spaces reflect the same expectations many people have for their home’s interior. DiClerico says the outdoor living trend was building before COVID-19, but it’s now supercharged.

“The quarantine forced people to see their outdoor spaces with new eyes,” he says. “In the past, a deck or patio might have been seen as a nice amenity for occasional barbecues. But now this outdoor space is an essential expansion of the home’s living space. Again, think flexibility and multi-functionality. Sure, it’s a place to grill hamburgers for an open-air meal, but with the right furnishings and shade protection, it might be a place for kids to do their home schooling. Or maybe there’s a wellness corner, with room to roll out a yoga mat or put down a meditation cushion.”

Related to outdoor living is the idea of biophilic design, or the creation of homes that foster a connection to nature.

DiClerico says, “At the high-end, we’re seeing expansive walls of glass, which create a seamless transition into outdoor living rooms. When that’s not in the budget, homeowners are using outdoor plants, natural materials and nature-inspired paint colors to enhance their home’s feeling of biophilia.”

Eliminating clutter

Dressing room

Closet organizer systems are having a moment during the pandemic. GETTY

“As the months of quarantine wore on, the clutter piled up, forcing homeowners to take storage and organization to a whole new level,” says DiClerico. “We’re seeing a ton of interest around closet organization systems and kitchen pantries, addressing two hotbeds of disorder in the home.”

The pandemic led to a major uptick in online-shopping. “That meant more packages being delivered, and also more packages going missing, whether from theft or simply because they get lost in the chaos of quarantine living,” explains DiClerico. “That’s creating the need for a dedicated package receiving center. It might simply be a freestanding drop box near the front door. But we’re also seeing more high-tech solutions, such as automated pass-throughs connected to a mudroom or other utility space, allowing delivery persons to safely deposit packages inside the home.”

DIY pet grooming stations

Beagle mix hound getting rinsed of soap from a bath

A key piece of equipment for a dog-washing station is a handheld shower head. GETTY

Pet adoption has skyrocketed during the pandemic as more people look for additional sources of companionship at home.

“Families don’t want to wash their four-legged friends in the same tub they bathe the kids, which has led to an increase in dedicated pet-grooming stations,” says DiClerico. “Outdoor stations might consist of a raised freestanding bath with showerhead that attaches to the garden hose. Inside grooming stations could be located in a basement or utility space, perhaps next to the washing machine, to take advantage of nearby plumbing and drainage.”

By: Brenda Richardson

Filed Under: Issaquah Community Blog Tagged With: COVID-19, Efficiency, Eliminating Clutter, Functionality, Home Improvement, Pet Grooming

Remote work may trigger a ‘suburban boom’ in real estate

May 29, 2020 by Kathy Reichle Leave a Comment

SEATTLE – With large tech companies like Amazon and Microsoft extending their work-from-home policies until the fall due to the COVID-19 pandemic, economists are predicting that real estate trends might shift and cause a “suburban boom” in the housing market.

In a newly released survey, the Seattle-based Zillow Group found that 75% of Americans working from home due to COVID-19 would prefer to telecommute at least half of the time once the pandemic subsides, and 66% said they would consider moving if their job allowed them to continue telecommuting.

These trends in the job market are leading economists to predict that post-pandemic housing preferences may move away from dense metropolitan areas due to the virus and more lenient work-from-home situations.

“Moving away from the central core has traditionally offered affordability at the cost of your time and gas money. Relaxing those costs by working remotely could mean more households choose those larger homes farther out, easing price pressure on urban and inner suburban areas,” said Zillow senior principal economist, Skylar Olsen.

As people reconsider housing options in conjunction with remote work, the amount of space desired by home shoppers will also shift. Zillow predicts that larger homes, especially those with extra rooms or home offices, will be in high demand.

Additionally, the growing affordability crisis in cities may also have a major impact on the suburban real estate surge. But proximity to a metropolitan center is still crucial. Redfin CEO Glenn Kelman predicted that people will move to nearby suburban areas like Tacoma to be able to make office visits in Seattle when necessary.

“More permissive policies around remote work and a rising wariness about close quarters will likely accelerate that trend,” Kelman said in a May earnings call. “More people will leave San Francisco, New York and even Seattle, some for nearby towns like Sacramento and Tacoma that are close enough to support a weekly office visit, others for a completely remote life in Charleston, Boise, Bozeman or Madison.”

According to the Pew Research Center, only 7% of American workers had the option to telecommute as a benefit prior to the COVID-19 pandemic although over 40% of jobs could be performed remotely. With more employers seeing that remote work is a possibility, this gap may narrow once the pandemic is over.

However, a shift to living further out of the metropolitan core is not without its drawbacks, which is why Olsen and other economists do not predict that the market surge will extend to more rural areas.

“However, [moving way from cities] means they’d also be moving farther from a wider variety of restaurants, shops, yoga studios and art galleries,” said Olsen. “Given the value many place on access to such amenities, we’re not talking about the rise of the rural homesteader on a large scale. Future growth under broader remote work would still favor suburban communities or secondary cities that offer those amenities along with more spacious homes and larger lots.”

by Callie Craighead | SeattlePI.com

Filed Under: Issaquah Community Blog Tagged With: Amazon, COVID-19, Microsoft, Suburban Boom, Working from Home

Eastside Real Estate Blog

The Cost Of Purchasing A Home In The U.S. Increased 55% Last Year. But It’s Still A Great Time To Buy A House For These Five Reasons

I’ve always been all-in on homeownership. Yet, for the first time in two decades since the beginning … [Read More...]

New Listings Signal Hope Is On The Horizon For Home Buyers

At the midpoint of April, housing markets are reflecting a changing landscape, according to a new … [Read More...]

Upscale Kitchen Features That Can Boost A Home’s Value

Between preparing to host family and friends for Thanksgiving and making gift lists and checking … [Read More...]

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Issaquah real estate

Larry & Kathy Reichle

371 NE Gilman Blvd. #160
Issaquah, WA 98027

Phone: 206-999-1690

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Eastside Real Estate Blog

The Cost Of Purchasing A Home In The U.S. Increased 55% Last Year. But It’s Still A Great Time To Buy A House For These Five Reasons

I’ve always been all-in on homeownership. Yet, for the first time in two decades … Read More

New Listings Signal Hope Is On The Horizon For Home Buyers

At the midpoint of April, housing markets are reflecting a changing landscape, … Read More

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