WOBO Governor Stephen Jones attended the NHAB virtual webinar – a real reflection of society housing activity and the impact of COVID-19.
Stephen attended the virtual webinar, “The Future of Urban & Suburban Housing in the Wake of COVID-19” and the presentations from the following individuals.
- Richard M. Gollis, Co-Founder and Principal, The Concord Group
- Robert Dietz, Chief Economist, NAHB
- John Affleck, VP, Market Analytics, Costar
- Svenja Gudell, Chief Economist, Zillow Group
- Charles Elliott,President, Toll Brothers Apartment Living
Interesting discussions reflected on the current state of society and highlighted a range of facts, statistics and trends within the housing market.
- Low to mid-rise, middle-density apartments are making up 50% of the new housing market.
- This housing trend has shown the greatest acceleration of all housing aspects.
- The work-from-home trend is helping to facilitate this movement.
- Land availability and regulatory issues are still key factors in hindering development. (Codes were not cited as an issue in hindering development)
- “Multi-family developments” have set a new 3rd quarter development record.
- 125,000 new apartments were delivered in the 3rd quarter.
- 4th quarter starts have dropped off dramatically.
- Suburban supply is hindering the single-family market – both new and resale.
- Rents “downtown” (urban) are down nationally by 3.5%
- 2-bedroom units are selling better than single bedroom units. (Hypothesized that the demand is due to work-from-home trend…second bedroom offers work space).
- The San Francisco rental cost is down an average of 17% – highest in country.
- Housing demand is being driven by Millennials (first time buyers)
- Buyers demand is strong – not enough sellers.
- Housing inventory is down 37% year on year.
- Average time-on-market for Suburban Single-Family Homes: 12 days where as the average time for 2019 was 42 days.
- Median “seller price” up 11.7% year on year.
- Weighted median average: Suburban up 4.1%, Urban up 4.3%…confirming that the urban housing market is still strong.
- 18-25yr old’s living with parents: 2019: 54.7%; 2020: 61.2%
- Demand is still high and climbing in suburban market across all sectors.
- Inflection point from urban to suburban demand dates to 2018….not directly tied to Covid crisis. This trend existed long before Covid reared its ugly head…however, the disease has caused a dramatic increase in people leaving urban areas.
- Millennials cannot spend their income on “experiences/adventures” so they are saving up to buy property.
- Work-from-home trend is causing a dramatic increase in home renovation projects.
- Increase seen in “second home” purchase/use due to work-from-home prevalence.
- “Golden Age” of Housing is Here!
- Trend towards “15-minute neighbourhoods” www.strongtowns.org/journal/2019/9/6/7-rules-for-creating-15-minute-neighborhoods
In summary, the webinar highlighted the movement within the current housing market, societal changes, the movement of people and the changing economic trends now and for the future.