Rural Markets to Thrive: Buyers now demand space

The past year has been like no other — some individuals have struggled, and others have celebrated. But regardless, 2020 will certainly be remembered by all. In real estate, one interesting development to come out of the pandemic has become a search for additional living space, due to people spending less time travelling and more time at home.

Also known as a “flight to space,” this translates into a desire to upsize in the city or seek single family dwellings elsewhere, such as the Fraser Valley. Technology-enabled working from home is resulting in a change in traditional values.

The housing opportunities are any marketplace right now where the new value formula is being reimagined. When you’re no longer constrained by a commute, you’re free to push the boundaries on choosing a place to live, and many are looking east, some are looking north, and some are actually looking west, to the islands.

This phenomenon is perfectly exemplified in the Langley townhome market. Demand has exploded as families strive to upgrade to larger, more affordable housing. Last year, 13 new such projects in the area began sales — accounting for half of the total number in the Fraser Valley, far outpacing the seven condominium launches (one concrete and six wood frame) during the same period. Of the 752 units released to market, 335 of those, or approximately 45 per cent, were already spoken for at year-end.

This increase in popularity has driven up costs significantly as well. New construction prices in 2020 rose $100,000 for two-bedroom townhomes, $60,000 for three-bedrooms and $50,000 for four-bedrooms, resulting in a correlating price-per-square-feet jump from just above $400 to $475.

The trend towards secondary marketplaces is expected to continue well into the coming months. These formerly rural locations will continue to thrive and see double digit growth in both price points and sales absorptions over the foreseeable future. Primarily because they simply do not have the density, nor the supply, to be able to maintain the demand metrics that is set to keep pushing into those new neighbourhoods.

2020 will be responsible for one of the most dramatic shifts in lifestyle habits in 40 years. Over the past 12 months, a new value formula has established itself through every marketplace, and the Fraser Valley has been the biggest recipient of this shift. 2021 will be a continuation of the new value formula, growth in the secondary marketplaces, and emphasis on single-family dwellings.