Decoding the Housing Markets: A Comparison Between 2019 and 2020

Without a doubt, 2020 reshaped nearly every aspect of the economy, and the housing market was no exception. At the beginning of the year, few could have predicted how dramatically mortgage rates, employment, and homebuyer demand would shift due to the COVID-19 pandemic.

In early 2019, the Federal Reserve signaled that only modest interest rate increases, if any, were expected over the coming years. At the time, prospective homebuyers viewed mortgage rates as historically attractive. Then came the pandemic, bringing unprecedented economic uncertainty and record-low mortgage interest rates that changed the housing landscape almost overnight.

How the Housing Market Responded

Just a year earlier, we highlighted some of the nation's most attractive housing markets, driven by low unemployment, improving affordability, and strong demand from millennial homebuyers.

Since then, several major economic indicators shifted dramatically:

• Mortgage interest rates reached historic lows.
• U.S. unemployment climbed to 14.7% in April 2020, compared with just 3.6% one year earlier.
• Despite economic challenges, the housing market remained surprisingly resilient.

After a brief slowdown, existing home sales recovered quickly. While sales dipped approximately 11.3% compared to 2019 levels during the early stages of the pandemic, home values continued climbing, increasing more than 5% year over year by late summer.

The result? Low inventory, strong buyer demand, and favorable financing conditions continued fueling a competitive real estate market.

The Hottest Housing Markets of 2019

Even before the pandemic, many buyers were already moving away from high-cost metropolitan areas such as New York City, Los Angeles, and Seattle. Rising home prices, taxes, and living expenses encouraged many households to seek more affordable communities with strong job opportunities and better quality of life.

Based on factors including population growth, average days on market, affordability, and listing prices, these markets stood out:

Grand Rapids, Michigan

Known for its parks, growing downtown, and vibrant entertainment scene, Grand Rapids attracted a significant number of millennial buyers, who represented nearly half of all new purchase mortgages.

Omaha, Nebraska

Omaha offered highly rated schools, affordable housing, and a lower cost of living, making it especially appealing to families and first-time buyers.

Boise, Idaho

Boise combined outdoor recreation, excellent amenities, and a thriving economy. Home values exceeded the national average, yet buyer demand remained exceptionally strong.

Shawnee, Kansas

This walkable suburban community offered affordability, excellent neighborhoods, and easy access to Kansas City's employment centers.

Rochester, New York

With a diverse economy, cultural attractions, and steady employment opportunities, Rochester remained an attractive option for many homebuyers.

Emerging Housing Markets in 2020

As cities gradually reopened and remote work became more common, many buyers began prioritizing affordability, larger homes, and suburban living.

According to AreaVibes, several communities surrounding Columbus, Ohio ranked among the nation's most livable cities based on factors such as:

• Education
• Employment opportunities
• Crime rates
• Cost of living
• Local amenities

Meanwhile, Realtor.com identified several of the hottest housing markets of 2020 based on buyer demand and average time on market, including:

• Colorado Springs, Colorado
• Reynoldsburg, Ohio
• Rochester, New York

These markets demonstrated that affordability, quality of life, and inventory availability remained key drivers for buyers navigating an uncertain economy.

What Homebuyers Can Learn Today

While the market has continued evolving since 2020, one lesson remains consistent: local market conditions matter.

Whether you're buying your first home, relocating, or refinancing your current mortgage, understanding your financing options is just as important as choosing the right neighborhood.

Before beginning your home search, consider getting pre-approved so you understand your purchasing power. Learn more about our Loan Process (https://www.thepoldergroup.com/loan-process) and explore available Mortgage Loan Programs (https://www.thepoldergroup.com/mortgage-loan-programs-tucson) to determine which option may best fit your financial goals.

If you're buying in Tucson or anywhere throughout Southern Arizona, our experienced mortgage professionals can help you navigate today's changing market with personalized guidance.

Frequently Asked Questions

Are low mortgage rates the only factor affecting housing demand?

No. Home prices, inventory levels, employment, consumer confidence, and local economic conditions all influence housing demand.

Why did suburban markets become more popular?

Many buyers sought larger homes, more outdoor space, and greater affordability while remote work became increasingly common.

Should I wait for mortgage rates to change?

Mortgage timing depends on your personal financial situation, housing goals, and market conditions. Speaking with a mortgage professional can help you evaluate your options.

Ready to Buy a Home?

Whether you're purchasing your first home, moving to a new community, or exploring refinancing opportunities, The Polder Group at CrossCountry Mortgage is here to help.

Contact our team today to discuss your financing options, get pre-approved, or learn more about available mortgage programs for buyers throughout Tucson and Southern Arizona. We're committed to helping you make informed home financing decisions every step of the way.

This article is for educational purposes only and does not constitute financial or mortgage advice. Loan programs, rates, and guidelines may change at any time. All loans are subject to credit approval and underwriting. For guidance tailored to your situation, consult a licensed mortgage professional.