COVID19 has changed what home buyers are looking for

A recent study by the Professor of Economics at Stanford’s School of Humanities & Science has identified 3 primary pillars of our current economy, which comprises of the “information economy”, the “gig economy” & now the “working-from-home economy" after COVID19 shook up the world earlier this year.

This drastic shift in our economy & workforce prevented a total economic collapse while the world went into lockdown and working from home full-time now accounts for 42% of the US labour force or roughly 2/3rd's of the current economic activity in the USA.

With the new typical work-week being 1-3 days from home & the remainder in the office, many people have changed the criteria with which they judge their property.

The Ontario Residential Real Estate Monitor (a collaboration between Ontario Real Estate Association & Nanos Research) asked 1000 adults who were active in the real estate market in late June 2020 about what they are looking for in a home & 1/3rd said that COVID19 had changed their search criteria.

30% said they want a bigger home with more space while 19% said they wanted access to more outdoor space.

Areas that are seeing the most demand are those that are far enough away from Downtown Toronto that they are more affordable with larger space, yet close enough to the Core that a commute on the GO train would take roughly 30-45 minutes each way.

Minto launched a new construction project in Markham called Union Village in February prior to the lockdown & it sold more than 300 units, however when they opened back up for sales in mid-June, it sold out of the remaining 71 homes in a single weekend.

While this trend might not be going away anytime soon, it’s important to remember that demand for Downtown living is still very high & inventory in many desirable neighbourhoods is still quite low (with some exceptions in buildings that previously allowed AirBnb which have seen a flood in inventory over the past 4 months).

Many people who prefer downtown living have altered their search criteria also for larger square footage & more outdoor space, however they are choosing properties in locations downtown that are within walking distance to everything that they need.

With less desire to take public transit in the city, there is a large influx in people walking or biking for their commute/errands & as a result, areas like Leslieville, Bloor West & High Park have all seen increased demand while inventory has stayed relatively unchanged.

It will be interesting to see how this new home criteria will reshape real estate in Toronto and surrounding areas as people remodel their properties & new construction projects alter their proposals to fit this new norm of living we have embraced.

Has COVID19 changed what you are looking for in a home?

Let us know in the comments section below!

Rylie C.

Sources

Nearly 1 in 3 Ontario home buyers say COVID-19 concerns have altered preferences: report

Ontarians say they’re increasingly looking into living in suburban or rural areas, citing a desire for bigger homes and more outdoor space

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