Hot markets and home feature fads: How the pandemic changed home buying

Core Insights - The housing market has undergone significant changes over the past five years, with home values and rents reaching record highs, and the number of homes valued at $1 million more than doubling since the onset of the pandemic [1][6][9] Market Trends - Home values have increased by 45.3$1 million home is now approximately 70 square feet smaller than it was at the beginning of the pandemic, indicating a shift in buyer preferences [7] Regional Highlights - Austin, TX, saw the most volatile market, with home values increasing by 40.3% during the pandemic's early phase but later declining by 14% due to rising mortgage rates [4] - In New York City, median asking rents have risen by 24.1% since the pandemic began, with the Bronx experiencing the sharpest increase at 42.3% [5] Construction and Supply - Builders responded to increased demand with over 1 million single-family home starts in 2021, the highest since 2007, which has helped to moderate price growth [8][10] - The shift towards higher-density homes, such as townhomes and condos, has been a strategy to maintain affordability amid rising land and material costs [10] Buyer Preferences - Outdoor features have remained in high demand, with buyers willing to pay at least 2% more for homes with such amenities [11] - Virtual home shopping has become more prevalent, with a significant increase in the use of digital tools, such as 3D tours, enhancing the home-buying experience [13][15]