It is no understatement to say that the pandemic has affected nearly every aspect of the way we live. While some of us have remained rooted over the course of the last year, changes in the housing market suggest that many among us have been quite mobile.
The recession that emerged as the pandemic raged has impacted the housing market, with business shutdowns driving people out of some major metropolitan areas. Other housing markets were better able to weather the storm, with more resilient business sectors and affordable housing.
Still, other “Zoom towns” saw a spike in growth, as remote workers sought out destinations that offered quality of life as a primary draw.
4 Hottest Markets for New Housing
Here, we offer a glimpse into several popular undervalued housing markets that are witnessing a surge in growth.
#1 Detroit, Michigan
Although Detroit has suffered more than its fair share of misfortune over the last decade, which was driven by the failing motor industry, the last few years have seen an upswing.
Quicken loans, General Motors, and Ally Financial all call Detroit their headquarters. Google, Microsoft, and LinkedIn all still have stakes in the Motor City, creating a draw for tech employees.
The long-term growth potential is once again strong in Detroit, with the median home listing price in 2020 of $59,000. This crowns Detroit as the most affordable place to buy a home in the U.S.
#2 Manchester-Nashua, New Hampshire
Realtor.com has ranked Manchester-Nashua, New Hampshire, as number one for having the best housing market in the country. As of March 2021, half of the homes for sale were selling in fewer than 19 days, which is 35 days faster than the country’s average.
This phenomenon underscores a trend in which buyers are seeking out open space while also desiring proximity to major metropolitan hubs.
#3 Truckee, California
Out west, the outdoorsy mountain town of Truckee, California, near Lake Tahoe, is experiencing a “Zoom boom”. Offering mountain biking, hiking, and every sort of water recreation, the town has historically attracted short-term vacationers, but has left a lot to be desired in the employment sector.
Enter the pandemic, where remote work has eliminated the daily commute for millions of Americans. Freed from the shackles of the commute, these remote workers are now re-evaluating the space around them and the values that they place on their quality of life.
As pandemic buyers bid on the remaining housing inventory in Truckee and other “Zoom boom” hubs, housing markets will respond. No doubt that a ripple effect will be felt in the housing markets left behind by this shift in demand for traditional vacation communities.
#4 Oklahoma City, Oklahoma
Affordable housing markets are often measured as offering an adequate amount of houses for sale within an individual’s house-buying power. Using this as a metric, Oklahoma City edged out the competition in the 4th Quarter of 2020.
According to First American Data & Analytics, Freddie Mac, of the 50 largest housing markets in the nation, renters can find the largest supply of affordable homes for sale in Oklahoma City.
Here, the median renter can afford 86% of the homes for sale, granting would-be homeowners a surge of buying power within this hot housing market. Yet, we must remember that data from the 4th quarter of 2020, can change drastically over the course of 6-months. Which is why today, Oklahoma City home buyers are paying more for homes as the costs of construction increase and the demand for new homes increases. If you’re looking for a home in Oklahoma City, there were better times to buy, but waiting may only cost you another 10 to 15%.
Sumeet is a professional writer who loves to research unique topics and express his thoughts by content writing.
