At the same time, well-off suburbs in areas like Greenwich, Connecticut, and Westchester County in New York, which had been relatively sluggish in recent years, quietly recorded strong performances in the first quarter, with few signs of slowing down…
For prospective buyers reacting specifically to the threat of coronavirus in New York City, suburban infrastructure may also hold a stronger appeal than what’s available in a typical vacation town.
“The general consensus is once this is over, you’re going to see a big surge in sales,” Mr. Pruner said. “But a lot of the traditional vacation spots may not necessarily see that. One of the issues is that they don’t necessarily have good medical facilities—even if you own a big house there, they don’t have the hospital or the resources”to go with it.
Though tastes have been trending toward smaller homes in recent years, buyers coming off the experience of their home suddenly becoming their entire family’s office, gym, school and recreation area are unsurprisingly now coming to their searches with a heightened appreciation for space, a fact that could bode well for suburban markets.
A few thoughts in response:
- This likely applies to a small segment of the real estate market: people with the resources and jobs to move during the COVID-19 crisis. Plus, the analysis here seems mostly geared toward higher-end homes. Could be worth keeping an eye on for the near future: how many well-off Americans make real estate decisions within the next few months?
- Conventional wisdom suggests potential homebuyers care about high quality school districts (for their kids’ education and the effect on property values). How many buyers going forward will also consider medical facilities? And what is the correlation between high-performing suburban school districts and nearby high-quality medical facilities?
- Given the moves in vacation spots – like the Hamptons or in the state of Michigan – to try to limit travel to second homes, might there be any long-lasting consequences? The influx of vacationers can already cause tensions but they can also be a very important source of business and income.
- The flip side of this analysis is the development of urban residences that emphasize health in different ways. It is not about providing a gym or a pool (which are not helpful during social distancing guidelines); it is about having buildings and residences with lower likelihoods of contracting illnesses. Imagine all antimicrobial resistant surfaces, units on their own air systems, separate entrances and hallways that limit contact with others, particular cleaning protocols, and other possibilities.