With many parts of the country under lockdown for much of the pandemic, people had a lot of time to reflect on their goals for the future, and where they see themselves. For an increasing number, where they see themselves is on their own land. Also called deurbanization, this movement out of the cities and into more rural spaces has picked up speed as people reassess what matters most to them. The pandemic showed people that balancing a sense of freedom and pride of ownership with staying connected is possible.
Real estate crunch
Several factors played into the tight real estate market analysts are seeing today. An out-of-control wildfire season coupled with the shutdown of several key lumber mills at the beginning of the Covid outbreak created a spike in lumber prices that is still affecting the cost of home-building today. Much of the construction industry came to a screeching halt during the pandemic and new home starts fizzled. Market analysts expected people to stay put and for a few months, and they mostly did.
Initially, many companies scrambled to figure out how to keep employees working in alternative workspaces. The remote work movement has been growing for years, but Covid was a huge accelerant. More people are working from home now than ever before, and experts predict the remote workforce will continue to grow even after restrictions ease and businesses open up completely. Connectedness during Covid and appropriate remote work support gave people the confidence to look further afield and to consider building on their own piece of land.
Land lot crisis
City lots are also disappearing fast. The markets for both rental and ownership are so tight that the turnaround time for a home that appears on the market is down to just a few days in some cities. People who are priced out of home and land ownership in urban and suburban areas are turning to more rural parcels as the only viable alternative. Rural land also offers potential owners greater freedom in exploring alternative building materials and home styles.
The most competitive land lot markets currently are in cities like San Diego, Sacramento, and perhaps surprisingly Boise, Idaho. Tight competition means buyers are snapping up city lots at lightning speed. Some potential buyers are unable to afford the rising costs or unwilling to settle for a less than ideal lot. Some studies indicate at least 14% of Americans are seriously planning to relocate.
The market movement took many by surprise, as some analysts theorized that job uncertainty and rising unemployment would dampen the land and home buying markets. After an initial dip, this has proven largely untrue. Now many companies cannot keep up with buyer demand even in very remote and rural areas. Some rural real estate companies are seeing inquiries increase by five-fold or more compared to a year ago, with no signs of slowing.
Home, but differently
Coupled with the desire to have a freer way of life is the movement into alternative types of housing. The number of existing homes in many markets has dwindled, but new home starts slowed down at the same time. This created a housing crunch and prompted many to think not only about moving to a more rural setting, but also exploring different types of housing. According to CNBC, the sky-high lumber prices add around $36,000 to the cost of single new home construction.
Lumber costs remain high and have forced many people to reconsider ownership. But one silver lining is that a growing number of people are exploring other options like cob housing, tiny homes, and even homes constructed partially or completely with upcycled or recovered materials.
Independent together
As of 2021, as many as one in four Americans are working remotely. Connectivity is improving steadily even in many rural areas. As businesses hone their support systems for workers, they are seeing tangible benefits to having a flexible and remote workforce. Having at least some workers off-site can reduce business costs, and many workers are more productive and happier. For many, remote work allows a better balance of work life and home life.
Many large companies, especially in the tech fields, have announced they will be permanently transitioning significant portions of their workforce to remote work. This en masse transition has opened doors for workers who previously felt tied to their location and trapped in less than ideal real estate markets. Some market watchers feel that the current exodus onto the land is another back-to-the-land movement like the one seen in the 1970s. Lockdown provided many people with the time to meditate on their lives. More people are experiencing a strong desire for self-sufficiency and simplicity.
Closed businesses, masks, and sheltering in place sparked a yearning for fresh air and open vistas for many. Fortunately, technological advances allow people to take their jobs with them as they migrate away from urban hubs in search of elbow room, giving this current back-to-the-land movement a very different look and feel than the 1970s. Former city dwellers are looking at these land parcels as their ticket to a more self-sufficient life, but they are not cutting themselves off from the outside world to do it.
Stress solutions
When people feel they have no control over events in their lives, it can be very stressful. The Covid-19 pandemic has created a lot of uncertainty and anxiety. For many, the solution is to seek out the peace and safety of land ownership. Apartments and bustling cities no longer appeal as connected and integrated. A growing number of people feel trapped and constrained and are looking for ways to create some breathing room.
Analysts expect the urban exodus to continue and even grow despite the lifting of Covid restrictions. The pandemic has served as a wake-up call to many to reexamine their personal values and how disconnected they feel from them. Real-estate companies are working overtime to connect people with rural parcels and homesteads as what it means to be a homeowner in the US begins to change.
