The Rise of "Zoom Towns" Amidst the Pandemic

What is the Concept of a "Zoom Town"?

The year 2020 brought a monumental change when the world was forced to hit the pause button in March. Initial expectations suggested this was a temporary shift, a brief phase of quarantine that would soon pass. Now, as we've moved nearly eight months forward, most U.S. citizens find themselves modifying their holiday plans and bracing for a long winter, primarily due to the persistent threat of Covid-19. This situation has led many homeowners to ask a question that has gained significant importance this year, "Do I really need to live here?"

The Emergence of "Zoom Towns"

In a world where schools are shifting to online education, restaurants offer primarily take-out service, and employers promote remote work, the way we live and work has transformed significantly. Even before the pandemic, the trend of remote work was on the ascendancy. Rapid technological advancements have made it possible for teams to work and collaborate seamlessly, even if located thousands of miles apart. Before 2020, about 4.7 million people in the U.S. were working from home, an increase of 173% since 2005. The onset of the pandemic boosted these numbers dramatically, as many companies adopted a full-time, work-from-home model.

This transition has freed homeowners from the need to live in a specific location. Consequently, an increasing number of people are migrating from major cities to less expensive suburbs and vacation towns, the so-called "zoom towns." This trend has been facilitated by historic low interest rates, enhancing the purchasing power of first-time buyers and investors looking for a second home. Despite the challenge of low housing inventory, these new buyers are finding ways to fulfill their goals.

Trending "Zoom Towns"

A recent real estate report* indicates that remote work could enable approximately two million renter households to become homeowners. Millennials constitute a significant part of this group, with nearly half of the 1.92 million renter households aged between 26 and 40 years old. Here are seven "zoom towns" that are worth considering:

Kingston, New York (Median Home Cost: $171,000): A thriving arts scene, revitalized historic district, and ample recreational activities make Kingston a top choice.

Lewisburg, Tennessee (Median Home Cost: $129,900): Affordable and conveniently located an hour from Nashville and Huntsville, Lewisburg is emerging as a preferred living location.

Martha's Vineyard, Massachusetts (Median Home Cost: $894,900): Accessible only by boat or air, this beautiful retreat offers a safe haven from pandemic-related concerns.

Butte, Montana (Median Home Cost: $132,400): With clear blue skies, endless mountains, and expansive open spaces, Butte offers much to admire.

The Hamptons, New York (Median Home Cost: $1,486,700): For a luxurious escape outside the city, The Hamptons provide upscale homes, top-notch dining, and miles of sandy beaches.

Aspen, Colorado (Median Home Cost: $1,635,500): Nestled in the Rocky Mountains, Aspen is a skier's paradise, offering breathtaking scenery and a reprieve from urban life.

Cape Cod, Massachusetts (Median Home Cost: $429,900): Quaint shops, biking trails, golf courses, boating, and above all, peace and quiet, make Cape Cod a great option for remote workers looking to relocate.

Strategizing Real Estate Moves

At present, the housing demand is high while the inventory remains low, leading to a seller's market. It's a time when a single property might attract multiple buyers, potentially selling at or above the asking price. In such a scenario, it's crucial for prospective buyers to plan strategically. Here are a few pointers:

• Understand your financial capacity and know how much house you can afford
• Get approval for a loan by meeting with a lender, such as CrossCountry Mortgage
• Ensure you have sufficient savings for a down payment

Predicting the future of the housing market is challenging. But it's prudent to consult a financial expert to explore all your options and avoid missing out on good opportunities because of waiting too long.

When you're ready to embark on your home buying journey, we're here to assist! Get in touch with a licensed Mortgage Advisor by filling out the contact form below.