The Pandemic-Fueled Preference for Single-Family Homes May Endure

Abstract

The coronavirus pandemic dramatically changed many fundamental facets of people's lives, including work, school, dining, and shopping. Home buying has been no exception as the pandemic affected long-standing housing preferences. Historically, "location, location, location" was recognized as the most important factor in real estate investing and home choice. However, now that people are not only spending an unprecedented amount of time at home, but also need designated space to work from home, the pandemic is elevating the role of specialized features of single-family homes in housing purchase decisions. Compared with demand for condominium (condo) and co-operative (co-op) units in multifamily structures, the demand for single-family homes grew faster during the pandemic and, combined with tight supply, led to significant price appreciation for single-family homes, regardless of location. After the pandemic subsides, the demand for single-family homes may moderate but will likely still be stronger than its pre-pandemic level.

Author:

Zhong Yi Tong