Conservatives have long warned of an exodus from large, Democrat-controlled cities that instituted draconian lockdown orders while allowing rioters to run free. That exodus is well underway as tens of millions of people trade in their homes and apartments in large cities to live in rural towns or suburban areas.
The alarming part of this exodus is the drastic yet predictable effect it has had on home prices in rural areas. The cost of buying an attractive home in a small town has gone through the roof. Clearly, that isn’t stopping them.
Lake Tahoe on the California-Nevada border is one such town that has witnessed the effects of the big-city exodus firsthand. Los Angeles and San Francisco workers have been ordered to work from home, and schools are only offering virtual classes so there is no reason for individuals to stay in town. Lake Tahoe realtors report that they are running out of homes to sell as inventory is a mere 10% to 20% of usual levels.
Buyers are writing cash offers for houses without even seeing the houses in person and homes are selling for considerably more than their asking price. One house, which was originally posted for sale at $1.65 million, sold in less than 24 hours for 2 million.
Desperate individuals who haven’t been able to snag a house have been resorting to buying land and hiring local builders to construct one. However, the process is far from smooth as local architects and home builders report that the waiting lists for their services are getting steadily longer.
Lake Tahoe isn’t the only remote area to witness a massive surge in real estate demand. Suburban areas around New York are also seeing a real estate boom. Manhattan sales crashed by more than 50% in July as buyers fled to suburban areas such as Long Island, Westchester County, and Fairfield County in nearby Connecticut.
Rural homes in New Jersey are also in high demand as irritated local homeowners note that brokers have been knocking on their doors asking if they would consider selling their residences. Houses in these areas are selling well above their asking price as real estate sales spike by over 100% in some areas.
It’s too early to say what the long-term effect of the huge exodus from major cities will be. However, current trends should serve as a wake-up call to anyone who is considering leaving an urban area but putting off the move for one reason or another.
Beyond that, we have finally found one reason to vote Democrat in November — if you’re selling your rural home, that is…
