Bloomberg Businessweek February 15, 2020 pp26-27 |Finance|”The Greatly Exagerated Death of (Some) Cities”. “Anticipating the end of the pandemic, U.S. homebuyers are looking to denser neighborhoods in smaller urban areas”. “The Bottom Line Home prices in more urban districts have jumped 15% in the past three months, outpacing suburbia-a shift from early in the outbreak, when downtowns lagged other areas.”
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Summary of the Article
Aside from the traditionally “hot” cities like NYC, Boston and SF smaller cities “From Pittsburg to Phoenix” are benefiting from “young white-collar workers [who] are taking advantage of record-low mortgage rates and flexible remote-work policies to move to desirable cities they find more affordable.” Two areas cited Detroit and Baltimore saw urban prices jump 43% and 34% respectively as buyers anticipate an end to the pandemic with a return to face-to-face entertainment. Meanwhile adjacent less dense areas saw price increases one-fourth to one-third as much.
These buyers are heading to Austin, Boise, Columbus, Nashville and similars as “cities that offer many perks of urban living without the sky-high housing prices.” As an example, “Nick Kraus, a 25-year-old…left a tiny apartment in Manhattan he shared with three roommates and moved to Nashville…he can work from more or less anywhere, so he paid $550,000 for a three-bedroom house within walking distance to 10 bars and restaurants. ‘I don’t own a car and I don’t plan to’, he says.” In some cities, like Louisville buyers avoid urban housing instead opting for homes in nearby adjacent areas like “Butchertown, Crescent Hills, the Highlands and St. Matthews. Prices reflect this preference. According to “real estate agent Libby Loeser, ‘You can list a house two minutes from downtown and will probably have five offers in the first 24 hours.’”
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