A popular aphorism contends that “the plural of anecdote is not data.” Even so, with an economic situation as unprecedented as we are experiencing, ground-level information can be instructive in identifying trends in the Phoenix residential market. For your consideration, here are a few interesting phenomena the R.O.I. Properties team has observed in recent weeks:
- Back in January, an empty-nest couple in their 50s had been discussing with us the possibility of downsizing from their longtime Phoenix house. Then COVID-19 happened. The kids came home from college, and the couple worked remotely—likely on a permanent basis. In our most recent conversation, they said they are actually thinking about upsizing to increase their available space and comfort.
- By virtue of being in residential real estate, our team has a lot of connections in interior design. If you have tried to book an interior designer recently, you probably have not had any luck—the contacts in our network say they have never been busier. The work-from-home trend looks like it is here to stay, and people are scrambling to convert rooms to home offices or to renovate their existing home offices to be more work friendly. (The same applies to home gyms.)
- Normal recessionary activity is that people save money rather than spending it, particularly on their homes. If you have spent any time in a Home Depot, Lowe’s, or Ace Hardware since mid-March, however, the crowds made it clear that the pandemic and additional time spent at home did not scare people away from completing DIY projects.
These anecdotes may not be hard data, but they surely point to space-related factors that will be top of mind for home sellers and buyers. They also serve as a reminder about the intersection between the residential real estate market and the commercial real estate market. Working from home changes the functional demands of housing, and it also may drive the long-term fate of the office market. Of all of the effects of the pandemic, the forced acceleration of work mobility trends may be the biggest and most durable of all.
For expert guidance in selling a home, finding your dream home or investment property, or strategies to maximize your return on investment (R.O.I.) on residential or commercial real estate assets, contact R.O.I. Properties at 602-319-1326 or [email protected].