With 2021’s low interest rates, real estate analysts noticed a surprising trend: demand for second homes. In today’s competitive real estate market, buying one home can be challenging enough. This is especially true in the era of COVID-19. However, analysts did not originally predict current homeowners to lead the charge on purchasing that second property.
What’s Really Causing the Demand for Second Homes?
The coronavirus pandemic created a ‘perfect storm’ of factors, leading to increased demand for second homes. In fact, the pandemic generated a great situation for those looking for a second home. Analysts note that this is especially true for those who have not considered one in the past.
Some common factors include the COVID-induced ‘cabin fever’ and the desire to find larger, open spaces. On this note, the Great Migration saw city dwellers head on over to the suburbs, away from typically smaller city apartments. Thus, more people dedicate time to finding that second property.
However, another large reason stems from a new real estate trend: ‘hybrid living’
How Hybrid Living Inspires the Demand for Second Homes
Hybrid living drives demand for second homes. Hybrid living entails people living in multiple places at once by splitting time between them.
This is more possible now than in the past because of factors, such as:
- Low Interest Rates: Interest rates on home mortgages hover around record lows. Initially, this trend began in 2020 with the onset of the coronavirus pandemic. Thus, consumers find first and second time home buying to be more affordable.
- Hybrid & Remote Work: 2020 saw corporate policies allow hybrid and remote work models. With more people working out of office completely or part-time, it has never been easier to live farther away from your work in a larger house in the country.
- Pandemic-Era Savings: While many did not go on vacation throughout the coronavirus pandemic, this provided ample opportunity to replenish savings. Now, many consumers find themselves with enough to comfortably purchase that second property.
These factors combine to make home buying more feasible across the board, not simply for the ‘ultra-rich’. Due to this, many consumers now have the opportunity to afford the dual lifestyle.
“The perception is that if you have a second home, you have to be a billionaire, but we’ve recognized especially in the last 18 months is that it’s possible to have a small apartment in the city and a small home outside the city,” Compass Inc.’s Chief of Real Estate, Leonard Steinberg told Bloomberg Wealth.
The pandemic created a perfect situation for those who found themselves looking to get away from the city after spending a year in isolation. isolated within it. Now, with low interest rates and remote work opportunities, the demand for second homes is soaring.
For further information on demand for second homes, get in touch with one of the title and escrow specialists at Plymouth Title Guaranty Corporation.
Please note: The safety of our staff and clients is our highest priority. Effective immediately, Plymouth Title Guaranty Corp. will be taking the following precautions to limit the spread of the COVID-19 virus:
All purchase transactions need to take place at a Plymouth Title Guaranty Corp. closing office.
- If a party to the closing is not feeling well, please contact your closer before the closing so appropriate precautions can be taken.
- We ask visitors to utilize the restroom in our building upon arrival to thoroughly wash their hands before entering our office.
- Only individuals required to sign and/or deliver documents at closings will be allowed in our office. Specifically, closings will be limited to borrower(s), seller(s), agents, and lenders.
- All pens used in the closing will be given to the client after use.
- All closing rooms will be cleaned and disinfected in-between each closing.
- Those picking up checks at our office will be instructed to call our main line and request to speak to a staff member who will plan for delivery to the lobby or parking lot of our office.
- All staff will refrain from shaking hands before or after closings and ask clients to do the same.
Please be advised that our staffing may be impacted during this unprecedented event. While we are committed to continuing to provide outstanding service, we ask for your patience in the face of this pandemic.