On The Move: Why So Many Moved in 2020

Last year was a source of great change for a lot of people. The coronavirus pandemic changed a lot about how we work, how we school, and even how we shop. Very few aspects of our lives remained unchanged. For many, the pandemic also led to a lot of people moving to different homes, different cities, or different states. Halfway through 2020 almost 20% of all adults in the United States ended up moving somewhere because of the pandemic. No matter how far the move is, there is one simple truth for anyone who has to do it -- moving is not fun. With that in mind, the team at Streamline Realty wants to take a deeper dive into the reasons why so many moved in 2020. 

Why Did So Many People Move in 2020?

2020 is infamous for the pandemic and the lockdowns that were put into place in order to control its spread. However, 2020 will go down in history just as much for the people who were moving. People were moving in and out of homes at a very high rate and for a variety of reasons. Some of them were related to the pandemic, but others were part of other demographic and economic trends. What were some of the reasons that so many Americans were moving in 2020? 

Low Mortgage Rates

One of the biggest trends of 2020 was a historic housing boom that was fueled by historically low mortgage rates. The Federal Reserve slashed interest rates in order to stave off the worst impacts of the pandemic on the economy. This caused mortgage rates to tumble, which sent Americans into a frenzy to buy their dream homes. In 2020, Over 840,000 new homes were sold. These rock bottom interest rates are a once in a lifetime opportunity to buy a new house and have a favorable mortgage. Many people took advantage of this situation and many people still are. 

Lower Taxes

Many individuals were looking to decrease the amount they spent on taxes. Studies indicate that cities with high taxes, such as San Francisco and New York, saw an exodus. A lot of these people moved to places with no state income tax, such as Florida and Texas. These moves were not only about taxes, but were also about overall cost of living. Most individuals cannot afford to own places of their own in New York City or San Francisco. However, for a fraction of what they are paying in rent, they are able to buy a much larger home in other places. 

Adapt to the Pandemic 

Many people moved homes in order to adapt to the pandemic. For some, this meant buying a new home to have more space. More people than ever started working from home, schooling from home, exercising at home, and eating at home. Homes were no longer merely places where we would sleep and change in between going back out. Our homes became our everything. As a result, many Americans decided to take advantage of low mortgage rates and buy larger homes. Not only were Americans looking for larger homes, they were also looking for larger lots with more open space. Families were trading in urban living for the suburban and rural life with big backyards, open parks, and winding trails. Individuals and families wanted more space, inside and out, so that they could avoid going stir crazy from the pandemic restrictions.

The pandemic also resulted in a lot of people moving in with other family members. Young adults who were out on their own were suddenly moving back in with their parents. This was especially true for those who worked in industries hard hit by the pandemic and experienced high volume of unemployment. Moving in with parents was a way to save money.

At the other end of the spectrum, older family members were moving in with younger adults for a combination of safety and comfort. Nursing homes proved to be one of the largest sources of community spread early in the pandemic. Rather than keeping their loved ones in nursing homes, many chose to bring them into their own home. This is also true for older relatives who were not in nursing homes. This had less to do with safety and more to do with avoiding loneliness. Restrictions and lockdowns risked keeping older family members in isolation. Older family members who lived on their own started to move in with their children, especially if they lived far away. Creating multigenerational households was an easy way for loved ones to be under the same roof and avoid going a long time in isolation. 

Final Thoughts

Many individuals and families were on the move in 2020. Whether it was cost of living, making the best of a pandemic, or moving into their dream home, moving trucks were working overtime. As long as the pandemic continues and mortgage rates remain at basement levels, there is always the chance that 2021 will be a continuation of these trends. Regardless of the reason, if you plan to move to somewhere in Massachusetts and need help finding a place, contact us! Our team of realty professionals can help you find the perfect home to buy or rent. Moving can be stressful, but finding the perfect place doesn’t have to be. Streamline Realty is here to help.