12/14/2022 0 Comments Suburbs are unwalkable![]() ![]() Home prices in rural areas nationwide rose 18.3% nationwide in the four weeks ending November 8, versus 14.3% price growth in suburban areas and 15.6% growth in urban areas. Housing Market Summary, Walkable Versus Car-Dependent Neighborhoods, October 2020īreaking the housing market down by rural, suburban and urban areas shows a similar trend. The typical home in a car-dependent neighborhood nationwide spent 30 days on the market before going under contract-15 fewer days than the year before-compared with 31 days for homes in walkable neighborhoods, 11 fewer days than last year. Homes in both car-dependent and walkable places were significantly more competitive in October than they were last year. But even though walkable neighborhoods aren’t quite as hot as car-dependent places, prices were up and supply was down by double digits in walkable areas in October. That’s because many buyers who were priced out of expensive walkable neighborhoods turned to more affordable car-dependent areas. Even before the pandemic, home prices in car-dependent areas had generally been rising faster, a trend that began in November 2018. The larger price increase and tighter supply in car-dependent areas this fall is due partly to the pandemic-driven popularity of suburban and rural neighborhoods, as people seek spacious homes for remote work and schooling and place less of an emphasis on commute times. Housing supply in car-dependent neighborhoods started dropping in July 2019, and has declined by bigger margins every month since the coronavirus pandemic hit in March. The number of homes for sale in car-dependent neighborhoods plummeted 39.2% year over year in October, nearly quadruple the 10.7% drop in walkable neighborhoods. That would make suburban and rural places permanently more attractive to buyers seeking walkability.” “New businesses may open in previously unwalkable areas given increased demand for neighborhood restaurants and coffee shops from residents who moved in during the pandemic. “While I expect proximity to retail and restaurants to be higher on buyers’ priority lists once the pandemic has passed, the landscape of walkability may be forever changed,” Fairweather continued. “Even though walkable, urban neighborhoods aren’t as hot as suburban and rural places this year, low mortgage rates have continued to fuel voracious homebuyer demand just about everywhere.” ![]() “With restaurants, bars and shops temporarily or permanently closed due to the pandemic, much of what makes walkable neighborhoods so desirable and valuable has been diminished this year,” said Redfin chief economist Daryl Fairweather. Urban areas tend to be more walkable, while suburban and rural areas tend to be more car-dependent. A place is deemed “walkable” if some or most errands can be accomplished on foot, while “car dependent” means most errands require a car. That’s according to data from Walk Score®, a Redfin company that rates the walkability of neighborhoods, cities and addresses. Since then, price growth has been on the rise in both neighborhood types, with the real estate market remaining red-hot throughout the summer and early fall as remote work drives people to explore homes in new areas. Price growth plummeted to record lows with the onset of the pandemic in both types of neighborhoods, with prices dropping 2.2% year over year in walkable areas in May and rising just 0.8% in car-dependent areas. Prices in walkable neighborhoods increased 11.3% year over year to a record $383,000, a sizable increase but smaller than the 13% annual rise in September. The median home-sale price in car-dependent neighborhoods nationwide rose 14.9% year over year to $345,000 in October, the biggest increase and highest price since Redfin and Walk Score® started tracking this data in 2014. ![]() The housing market is also hot in walkable urban neighborhoods, with prices up 11%, as homebuyers display renewed interest in city life. Supply is down and competition is fierce in suburbs and rural areas. ![]()
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