Best & Worst places in U.S. to invest in while in pandemic
Over the past decade, U.S. homeowners saw their cumulative home equity climb by $6 trillion. That massive gain larger than the GDP of every nation with the exception of the U.S. and China confirms that real estate is still a winning strategy for wealth building.
Millions of Americans have physically uprooted themselves in recent months, fleeing cities to second homes or to stay with relatives (in my case, with my in-laws in Ohio). That is already disrupting the housing market. And if more employers make remote working the new norm, it could further transform real estate. Like the 2007–2009 recession, this downturn is hitting some regions and cities in particular, tourist destinations harder than others. Over the past two months, many of the real estate sources across the nation and analyzed reams of data to pinpoint the best and worst places to invest in real estate during the pandemic.
One theme quickly became clear: The coronavirus disruption created a new normal for real estate virtually overnight.
"The expectations for the [2020] spring homebuyer season was it was going to be the best in 13 or 14 years. But the pandemic hits and everything falls off a cliff," says Frank Nothaft, chief economist at CoreLogic. As states ease lockdowns and home showings return, housing is already starting to rebound in some markets. The key word: some.
To be poised for strong real estate growth, Ellie Mae COO Joe Tyrrell says, you'd want a market with a lot of twenty and thirtysomething buyers who are expected to drive the housing recovery and a local economy that isn't dragged down by mass joblessness. These factors were included in Fortune's ranking of the best and worst places to buy real estate during the pandemic.
Our analysis focused on the 200 largest metropolitan areas in the country. In all, we weighted 10 metrics, including price appreciation, availability of second/vacation homes (highly sought-after during the pandemic), home affordability, millennial populations, population growth, and jobs impacted by the pandemic.
Topics: U.S. Real Estate Market, Investment Returns
Work cited: Lance Lambert, July 17, 2020
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