Suburbanization.. What's it good for???

I was reading an interesting article that one of our real estate brokers sent us. They are one of the larger national companies with a huge presence in all aspects of real estate. We are networking with them to try to find deals that are a fit and before they get listed on the online platforms for co-brokering. Like I mentioned in the past if it’s online… dozens already said no thanks before it was ever uploaded.

It relates to the current trend and momentum that it’s gained in the last few quarters. City folk moving to the burbs! Here are some of the take always… Enjoy

1. There was a popular shift toward suburban areas as millennials started to mature and build families.
   a. This health crisis has now accelerated not initiated this trend
   b. More than half of millennials are in their 30s
   c. This is about 40mm people who are now looking to change their needs from when they were younger
2. Generation X – seems history does repeat itself!
   1. According to the data, in the early 2000s Gen Xers started to move to the burbs for more space and a better environment for their kids.
   2. I can directly relate to that as I moved from a vibrant active neighborhood (Bay Ridge in Brooklyn, NY) to a suburban town with amenities such as:
      a. Low crime
      b. In town train and express bus
      c. Very good school system
      d. And a cute downtown
      e. A backyard that can accommodate a pool and grill
   3. I do think one major shift is the Work From Home (WFH) effect
      a. This fad is catching on even with some of the old school companies
      b. Will still have to see how this works out regarding the office space sector
      c. Elevators, small cubicles and mass transit are a concern

1. 1. What are we seeing do to this health crisis?
      
      a. People seem to be preparing for something like this again in the future, with an emphasis on more open space and personal enjoyments VS convenience to everything
      1. 1. Mass transit, theaters and museums are now viewed as higher risk
         2. Social Distance Backyard Cocktail Hour has now become a thing
         3. Spare bedrooms are now a home office
         4. Satellite offices, companies still holding onto their main office with smaller hubs in surrounding areas.
            
            
            

             

            Here is an interesting picture that I wanted to share and further supports my theory. I personally think that the future will hold this in store for us:

1. More demand in single family homes (purchase AND rentals)
   1. I think it is wiser to rent a house in a new area to test the waters
2. In a major city demand for apartments with 3+ bedrooms will drop
   1. Billionaires Row may start to see some 5%ers
   2. To a point, at a certain level Gen Z will roommate up and take them
3. Baby Boomers, Gen X and Z will take the place of the Millennial and absorb the supply of studio, 1BR and 2 BR apartments
4. The term nice commute will transform from “good buses and trains” to “close to major highways”
5. And finally, I think retail may pick up b/c of these new neighbors.
   
   a. I have not read this or saw this on any podcasts so I’m going on record
   b. I believe millennials (although, very internet dependent) are large consumers of local and unique products.
   c. Look out for new and interesting food options, especially fusion!
   d. Environmentally friendly trends (this is all over the news, not original)

1. 1. Consignment and Secondhand stores
   2. EV charging stations

If anyone would like to read the article themselves or wish to discuss this further on how we are planning for this, please contact me DIRECTLY HERE.