Remote Work Reshapes U.S. Housing Market, Lifting Secondary Cities and Suburbs as Boomtowns Cool
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The total value of the U.S. housing market is now $47.5 trillion, up $2.4 trillion in the last year, driven by affordable "secondary cities" attracting remote workers.
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Newark, NJ and other gritty, affordable cities near major metros saw home values jump 10%+ due to remote work demand from priced-out big city workers.
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Expensive and pandemic boomtown cities like Boise and New York saw home values decline as demand cooled off.
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Suburban home values rose 5.6% to $29 trillion due to a pandemic-driven return to suburbs, while rural areas rose 6.3% to $7.4 trillion.
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Despite slowing home sales, prices are propped up by low supply, a 2022 price trough, and some new construction, though a 2024 mortgage rate drop could help affordability.