Wednesday, February 03, 2021

Analysis says number of rural homes for sale nationwide down a record 44% from last year, and prices are up 16%

Redfin chart shows same-month change in number of homes for sale. Click on the image to enlarge it.

The rural real-estate market is tightening, probably driven by urban residents fleeing the city to work remotely during the pandemic. According to a data analysis by real-estate brokerage Redfin, "The number of homes for sale in rural areas nationwide declined a record 44.4 percent year over year in the four weeks ending January 21, and fell 38.4% in suburban areas. Those mark the biggest annual inventory drops since Redfin started tracking this data in 2017," Dana Anderson reports. "The shortage of homes for sale is more severe in rural and suburban neighborhoods than urban areas. In urban neighborhoods, the number of homes for sale dipped 16.9% over the same time period, less severe than the 21.5% drop seen in May and June."

The squeeze could cause growing pains for small towns. Surging housing prices could make it difficult for rural residents to afford moving, and could trigger rent increases in their current housing. The influx of new residents, which many rural areas have already reported seeing during the pandemic, can cause problems such as overcrowded schools.

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