The U.S. is still the most affordable place on the planet if you want to buy a home in a developed economy, but the average is deceiving. Good jobs tend to be clustered in major metro markets where home prices are high. Land prices and restrictions on land use are keeping them high and that isn’t like to change quickly.
The coronavirus pandemic demonstrated that a lot of people don’t need to be in an office to do their jobs. As we pointed out a few weeks ago, remote work can be a good deal for both employers and employees. If you work from home, you don’t need to be in the city.
Apparently people are figuring that out. WSJ says the number of Americans who are relocating has doubled since the pandemic began. If this becomes a trend, it will make major metros more affordable.either by pulling home prices down or pushing wages up.
It will also spark more construction activity in secondary and rural markets—both new home construction and remodeling to add home offices. It’s not a big deal yet, but keep your eye on this ball.
