How Covid Transformed the Housing Market
Since early 2020, home prices have skyrocketed, with U.S. home values up a staggering 45%. Some cities, like Miami, saw even sharper increases, making it one of the nation’s hottest markets. Rents climbed alongside home prices, especially in places like New York City, where the median asking rent now sits at $3,600—24% higher than before the pandemic. Austin took the wildest ride, experiencing both record highs and significant drops as demand shifted and mortgage rates adjusted.
Another major shift? Million-dollar homes are no longer as rare as they used to be. Nearly a million more homes have crossed the $1 million threshold, though they’re actually smaller on average. Square footage has shrunk as demand outpaced supply, forcing buyers to adjust their expectations.
New construction surged as builders scrambled to meet demand, particularly in booming metro areas like Houston, Dallas, and Phoenix. But with rising interest rates tightening budgets, developers have shifted toward building higher-density homes like townhouses and condos to keep prices manageable.
When it comes to home features, some pandemic-inspired trends stuck around while others fizzled out. Outdoor spaces remain a hot commodity—backyards, outdoor kitchens, and patios are still top of the wishlist, with buyers willing to pay more for them. On the flip side, the so-called "cloffice"—a closet converted into an office—turned out to be a passing fad. The same goes for makeshift "Zoom rooms" and at-home gym corners, which buyers have lost interest in as work and life patterns stabilized.
Virtual home shopping has taken off in ways few could have predicted. Buyers now rely more on 3D tours and immersive online experiences to narrow down their options before setting foot inside a home. Zillow reports that listings featuring 3D tours get significantly more views and saves, proving that convenience is king in modern home buying.
The bottom line? The pandemic left a lasting impact on real estate, shaping not only where people live but how they search for homes. Prices are higher, space is more valuable than ever, and the way we shop for homes has fundamentally changed. Whether you’re buying, selling, or just keeping an eye on the market, it’s clear that the real estate landscape has entered a whole new era.
Source Inspiration: Zillow