Just a year before the pandemic, a married couple in their 30s bought a condo near downtown Philadelphia. Built in the late 1940s, the unit lacks several modern conveniences -- such as an in-condo laundry and ample parking. But when the couple bought the place, they thought the building’s proximity to their offices made up for these shortcomings.
COVID-19 changed the pair’s housing priorities dramatically. Both partners have been offered the option of permanent full-time remote work and have accepted the privilege.
That’s why they’re now in the market for a larger house in another state.
“For the sake of our marriage, we need much more space to spare each other’s nerves during work hours. We’re crying out for a detached place with at least 2,500 square feet and two big home offices,” says the wife, a data analyst for a hospital chain.
Fully 60% of U.S. workers hold jobs that can’t be done remotely. And numerous other workers have recently been called back to the office by their bosses, according to the Pew Research Center, a Washington-based think tank. But due to remote work, this Philadelphia couple is fortunate to have a wide array of lifestyle choices.
”We plan to keep our Philadelphia jobs but move to South Dakota, where our families live. There we could afford a really huge house on an acre or two of land. It’s a luxury to have the right to pick our new destination,” the husband says.
Of course, nearly all buyers face tough challenges in the current market. Though home prices have dropped in some metro areas, they continue to rise at the national level. Since last year, median prices across the country rose 2.3%, to $366,900. And available properties remain scarce in popular neighborhoods.
“The housing market is still reeling from affordability problems,” says Jeff Tucker, a senior economist at Zillow, the Seattle-based real estate company.
Given the hurdles facing them, buyers are more thoughtful than ever in assessing their lifestyle preferences before committing to a property. That way, they’re less likely to suffer buyer’s remorse.
“It’s not just which city and neighborhood you choose. Also think about a floor plan that would function well for you,” says Sid Davis, a Utah-based real estate broker.
Though many young households have long favored an open floor plan that merges a great room with the kitchen, that configuration is gradually losing some appeal. Also, more buyers want secluded home offices with doors.
“Walls and privacy are coming back, and more buyers now want a separate dining room. Over dinner, they hate looking at dirty dishes,” says Davis, author of “A Survival Guide for Buying a Home.”
Here are a few pointers for purchasers:
-- Distinguish between your housing wants and needs.
Nearly all buyers must make trade-offs when they purchase a home. Unless you’re wealthy, you’ll need to set priorities.
“Making a priority list is the absolute key. You have to decide what features are most important for everyone living in your household,” Davis says.
If you’re married or living with a partner, he recommends you sit down with the other person and each rank your housing priorities. Then compare notes and if there are differences, compromise.
-- Consider whether a large house is worth the expense.
Among buyers who seek a spacious home are those who love to throw large parties and family gatherings -- as well as people who believe that home entertaining is central to the fulfillment of their professional responsibilities.
“I know CEOs who think they must have a very big place to show off to clients or colleagues. They feel the need for this, even if their spouses don’t want all the complications of big house upkeep,” says Mark Nash, a longtime broker in the Chicago area.
If home-based entertaining with large events is something you value highly, and you’re comfortable with the mortgage and tax costs for a big property, why not go for it? But if you’re interested in the financial benefits of living smaller, Nash suggests you consider some less expensive options for your parties.
“Why not take your guests to your favorite restaurant and rent a space for your parties? That could be a lot less expensive than maintaining a big house just for entertaining,” says Nash, the author of “1001 Tips for Buying and Selling a Home.”
-- Take a realistic view of your storage needs.
Davis says many buyers like big houses because they place a premium on lots of storage space. For instance, people with large wardrobes often want a spare bedroom to serve as a walk-in closet. Others want extra garage space for their hobbies, such as collecting vintage cars. In addition, for general storage many families appreciate a “storage loft” above their garage.
Assuming you can afford it, Davis says buying a large house for extra storage space could be a reasonable idea. After all, a large house could save you a significant sum over the rental expense required for the long-term use of a self-storage unit. But he cautions against the assumption that a large house will allow you to keep accumulating ever more possessions without a problem.
“No matter how much storage space you get in a big house, you’ll eventually need to stop shopping or clear through the accumulations you already have,” Davis says. (To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)