There Is No “national Housing Market” (and Why It Matters)

The onset of the COVID-19 pandemic has prompted a large number of city dwellers to reconsider their housing choices, many of whom have opted to move out of their cramped apartments and into homes with outdoor space and parking. People bought houses for other reasons as well, and soon there was a severe shortage of affordable housing in remote areas in many parts of the country.

Now, a few years later, supply and demand for housing has become much more localized, with prices continuing to rise in some areas and fall in others. In fact, a recent analysis by Realtor.com suggests that the concept of a “national housing market” no longer exists. Here’s what you need to know.

What happened to the domestic housing market?

The combination of inflation and rising interest rates has resulted in hyperlocal home buying trends that make it nearly impossible to generalize about the national housing market. “Every city and every street across the country has its own unique housing market,” economist Ali Wolf told Realtor.com .

Think about local housing markets

According to Realtor.com experts, potential homebuyers should keep a few things in mind when deciding where and when to make a purchase:

Consider a region

Currently, regional housing markets in the Northeast, Midwest, and Southeast (Florida in particular) are still strong, with smaller cities that still have affordable housing performing better.

Expand your search

If you’re dreaming of a particular area, suburb, or neighborhood, but you’re missing the price, don’t lose hope entirely. Instead, zoom out on the map and focus on the surrounding areas. With such a localized housing market, even a few miles can make a difference.

Be realistic and open to compromise

What is more important to you: having a bigger home with more property, or being closer to amenities and activities? If you’re on a tight budget and targeting a specific city or town, chances are you won’t have both.

Look for smaller homes closer to the city center or main street area where you would like to live. Or, if your priority is to have more property, enter with the understanding that you may need to be further away from the action.