Manhattan rent prices have reached a new high, causing concern in the real estate market. Dolly Lenz Real Estate CEO Dolly Lenz and Managing Director Jenny Lenz discuss this issue and their outlook for the industry. However, affordability is not the only consideration for potential homebuyers. The proximity to work has become an important factor as companies are bringing their employees back to the office, at least part-time.
Zoom, which played a significant role in enabling remote work during the COVID-19 pandemic, is now asking employees to return to the office two days a week. As a result, the commute to work has become a more significant consideration for homebuyers. This shift in priorities has led to a noteworthy trend in certain metropolitan areas.
For the first time in five years, the suburbs of major metropolitan areas such as Boston, New York, Chicago, Detroit, and St. Louis have made it onto Realtor.com’s Hottest ZIP Codes report. Homes listed in these areas have received an average of 3.6 more views compared to the rest of the country and have sold one month faster in 2023.
Realtor.com Chief Economist Danielle Hale explains that homebuyers are increasingly attracted to zip codes near major cities that offer good job opportunities and a high quality of life. These zip codes tend to have higher prices due to their proximity to urban centers. The rising demand suggests that commuting is becoming a more frequent occurrence and a top-of-mind consideration for homebuyers.
However, the return to the office trend has created a bifurcated market, according to Hale. While some buyers are looking to move closer to their workplaces, there is also evidence that a portion of buyers still have work flexibility and are willing to explore more affordable options farther away from the office.
In summary, Manhattan’s record-high rent prices are impacting the real estate market. Homebuyers are now considering proximity to work as a crucial factor when deciding on a property. This trend has led to increased interest in suburban areas near major cities. The return to the office is shaping the real estate market and creating a division between buyers who prioritize location and those who seek affordability.
Sources:
– Dolly Lenz Real Estate
– Realtor.com
– FOX Business