We thought you would like to know some changing real estate trends we are watching and how we are adapting. This is only the 2nd time in my 30+ years in real estate I can remember changes so significant like we are seeing today. The trends we are seeing today are different than normal economic cycle’s ebb and flows.
The last changing real estate trends we saw was back on 9-11, 2001 The United States was rocked by an enemy. The country banded together, and Americans decided it was safer to nest at home versus travel abroad. So, they did. People hunkered down, traveled to within driving distance of their home and made home renovations, because home is where they were going to enjoy life and their family for a while.
Changing Real Estate Trends
Today, we are seeing similar tendencies. Cruises, airline travel, and International travel are scary to many considering covid-19. Workers learned to work from home, and companies learned it’s feasible. Once companies learned this, they also learned they can save on high cost lease space in the city and setup shop in either the suburbs, or far away from where they originally thought they must be.
Two things happened. Workers realized if they could work from home anywhere, why be in the city, and why be in high tax states? Why not move to warmer climates that are tax friendly? Not long after that, companies realized the same things. If our workers are moving, why couldn’t we? Companies have been reluctant to move for fear of displacing so many workers and not having talent in the location they might move to. Now that workers are willing to move, combined with fact they can still work and not have to live where they work opened the doors for companies to explore options.
Then another thing happened; the unfortunate death of George Floyd, the protests that ensued, and more specifically, the riots and mayhem. Combine this with talk of disbanding police departments and it sent some companies over the edge. Companies like steady, predictability. Chaos and mayhem are not business friendly. The thought of closing stores, losing inventory, and putting employees in harms way was too much to stomach, and many businesses are leaving. It’s not good business practice to operate in unstable environments.
This is also a reason why some companies are relocating from China back to the US; predictability and stability. So, who benefits and who loses in such a scenario?
Florida is Attractive to Buyers
States like Florida are big winners. Florida has done well with covid-19. Riots have been well contained in Florida and leadership at the state and local levels have been strong. Sure, some will always disagree with this stance or that, but leadership itself has been strong.
Consumers are looking to migrate out of cities and move to suburbs, smaller towns as well as rural. RV sales have picked up tremendously. RV dealers are practically sold out in some cases. I checked with an RV dealer locally who confirmed sales are off the charts and they are having a hard time keeping inventory. Sound familiar?
Gun sales have increased. People are worried they may rely less on the government for protection. The events of 2020 may shape real estate decisions in a way we have not seen since 2001, and this time it appears to be more dramatic.
People crave predictability and stability. Companies do too. When they do not have that, they take control to the extent they can, and that’s their family’s personal safety and housing.
Shifts in Advertising
We have shifted our advertising. We still advertise locally, and we are bumping up our advertising into areas where we know people are migrating out. It is working. We have buyers coming in from all over. Our artificial intelligence can identify where buyers and referrals are coming from for any city. For example, here is the map for incoming referrals to Tampa. Each city has its own patterns. Hire us and we’ll put the SW Florida data to work for you.
The Ellis Team is forging relationships with top agents in each of these cities, as well as taking out targeted ads directly to buyers in those cities. They are coming here and buying. Our team sold 3 homes last weekend to leads we have been working using targeted ads.
See last week’s article “Agent You Choose Matters When Listing Your Home”