Three Ways the Pandemic Impacted the Housing Market Long-TermBy RISMedia Staff
The Covid-19 pandemic did more than temporarily change how and where people live. Government actions over the past three years, along with more freedom for many to work remotely indefinitely, will impact housing affordability, the number of homes available for sale and people’s housing choices for years to come, according to two new reports released by Bright MLS.
The reports, conducted in partnership with George Mason University, took a look at home sales transactions within the Mid-Atlantic region between 2018 to 2023 to assess the long-term impact of the government’s COVID-19 response and remote work on the housing market. Key highlights:
“The pandemic upended the housing market, opening up new homeownership opportunities for many and prompting others to re-evaluate where they wanted to live and what they wanted in a home,” said Dr. Lisa Sturtevant, Bright MLS Chief Economist. “Our research shows the pandemic-era federal stimulus payments and monetary policy, along with remote work, allowed more people to become homeowners, especially individuals and families with traditional lower homeownership rates. However, those same policies had a major impact on affordability, supply and home preference that will shape the housing market for at least the next three to five years.” “Higher prices, along with mortgage rates that ultimately moved higher, are pricing many people out of the market, particularly first-time homebuyers. Delaying homeownership delays wealth creation. Although some benefited during the pandemic, those who missed the window are getting further behind,” Sturtevant continued. “Interest rate policy locked up both the demand and supply sides of the housing market. Inventory in the Mid-Atlantic region is less than half of what it was prior to the pandemic and monthly new listings are at a two-decade low,” Sturtevant said. “It is this low inventory that has kept home prices rising, even as the higher mortgage rates have slowed demand. The outlook is for low inventory to continue at least for the next one to three years.” Sturtevant concluded, “With work from home still very common for some businesses and industries, housing preferences are very different today than they were for millions of Americans prior to the pandemic. With commuting no longer a factor, many may be comfortable exchanging proximity to an urban area for affordability and more space.” For the full report, visit https://brightmls.com/PostPandemic. |
Today's Top Stories |