Real estate trends are constantly changing to fit lifestyles, legislation, and affordability in a modern world. After COVID-19, the wants and needs of those in real estate have drastically changed as working from home has changed how people see their homes, legislation and law have demanded more eco-friendly properties, and economic changes have changed priorities for buyers. It has also crept into the location of properties, as the question of whether to invest in suburban properties or city properties becomes a prominent concern for investors and those looking to purchase their first home.
More than ever, lifestyle has affected the way that we see properties, leading to the question. Are cities making a comeback, or are suburbs still booming?
The urban comeback
Although in the past those investing mainly focused on suburban homes, as those who are working remotely would like to pay lower rates for bigger properties and want to be closer to nature, were drawn to property outside of the city. However, post-covid lifestyle are starting to change this. Those who once could work completely remotely are being urged to return to the office, causing office workers to want to live closer to their workplace to shorten their commute. Also, as restaurants open back up and the industry starts to thrive again, and culture grows, many want to be back in the epicentre of cities to experience the reinstated city lifestyle again, as well as benefiting from the transport links that come with living in a big city.
Many cities are also seeing revitalised downtown developments, which give young professionals access to the city without the city price tag, creating an influx of younger Gen Zs to big cities who are interested in buying and renting.
Overall, these shifts in work and lifestyle have created a demand in cities that can be capitalised on early by investors.
The suburban boom continues to grow
Although the demand for city living is rising, demand for housing in the suburbs continues to grow. Many offices are continuing with remote work, whether to save on costs or because of the rise in satisfaction and productivity with at-home work. This flexibility has spurred those who once lived in cities to move to suburbs to benefit from larger housing and lower living expenses, compared to city centres. The suburbs are also perfect for those professionals who are outgrowing cities and in search of a quieter life to either settle down or start families.
Overall, suburbia is not diminishing, boosted by the high costs of city living, as well as the rise in remote working.
What this means for buyers and sellers
For buyers: Choosing between urban condos and suburban homes depending on lifestyle, budget and proximity to work
For sellers: Understanding where demand is strongest, whether in city centres or suburban communities, can help maximise property value and attract the right buyers.
For investors: Market shifts create opportunities for strong rental yields in high-demand areas, while emerging neighbourhoods may offer long-term growth potential and increasing property values.
The future of the housing market
The future, just like the working trend, will follow hybrid values. Hybrid living trends will highlight the importance of downtown area investment as it provides inhabitants with the best of both worlds, with city life and less expensive living options. As cities continue to expand, these investments, just like lift servicing, provide longevity as value will be predicted to rise in the following years. This balance between urban and suburban living provides choice and a middle ground for both buyers and sellers.