The latest data from the NAHB revealed that the areas with the shortest commute times experienced the fastest homebuilding growth in the first quarter of 2021, with those areas posting average year-over-year growth rates of 22.2%. There are a number of factors as to why this is the case, but while longer-commute areas were losing market share, those lower-density, shorter-commute counties continued to be in high demand. The lower land pricing combined with less regulations also make these areas easier for homebuilders to meet the demand and build out quickly. “With the shift to telework brought on by the COVID-19 pandemic, housing demand continued to show the strongest gains in lower density markets in the first quarter as people have flexibility to live further out and even outside some metro areas,” said NAHB Chairman Chuck Fowke. “Given the regulatory burdens and lack of lots in higher density, higher cost markets, builders are better able to meet demand in suburban, exurban and rural areas because of the lower cost to build.”
Property technology investors are bullish on cities and retail even as the effects of the pandemic, like remote work, linger. The reason? Human beings are social at our core and that means we will seek out opportunities to stay connected. While housing booms in suburbs and small cities are likely to continue, marketers in larger cities need not be discouraged. Rather, consider adding new tech options like Flex, which allows for rental payments to be made in installments, and Latch, to increase the appeal of your property and take advantage of demand when it returns.