Suburban home values were up 5.6% last year
The U.S. housing market gained $2.4 trillion over the last year and homes in suburban areas saw their values increase by more than 5.6%, according to a new Redfin report. That’s more than homes in city centers.
It’s good to be a suburban home owner right now. And there are a lot of them, per Redfin’s Chen Zhao.
There are folks who locked in low interest rates during the pandemic, and “even if they were called back to the office, you know, [they] are working in a hybrid situation where they’re spending less time in the office.”
Increases in suburban home values are here for a while as newcomers to the ‘burbs stay put, she said.
“The lock-in effect. I think there is stronger than in nonsuburban places simply not just because they have a low interest rates but also just because people moved so recently,” Zhao said.
Suburban home values may be increasing more than homes in urban areas on the whole, but proximity to city centers still matters, said Nikolas Scoolis with housing data firm Zonda.
“We see sales and price appreciation both drop off pretty substantially after the 25-mile mark,” he said.
Suburban home owners still want to be close to downtown amenities, Scoolis added.
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