Take Nick Kraus, a 25-year-old who moved out of the tiny apartment in Manhattan that he shared with three roommates. The management-consulting firm that employs him now allows workers to live anywhere. He conducted a scenario analysis, concluding that New York was overpriced and condo fees in Miami were too high. So he settled on Nashville, Tennessee, where he knows hardly anyone, and purchased his first home this month for $550,000.
That bought him 2,000 square feet, including three bedrooms and a covered deck with wet bar. The pool and foosball tables are on order. And there’s plenty to do nearby in the meantime—Kraus says there are 10 bars and restaurants in walking distance.
“One of the things I didn’t want to give up when I was leaving New York was that urban walkability,” he said. “I don’t own a car and I don’t plan to.”
Thriving Neighborhoods
Downtown Louisville, with its high-rise condo towers, has something in common with midtown Manhattan. The office workers are gone, the streets seem empty and the high-end units aren’t selling very quickly. But buyers, including many from around the country, are snatching up townhomes and single-family houses in the vibrant urban neighborhoods that surround it.
Prices have long been strong in the artsy Highlands, Butchertown, Crescent Hill and St. Matthews neighborhoods that are dotted with murals, ethnic restaurants and independent coffee shops. But now they’re soaring, said Libby Loeser, an agent with Keller Williams Louisville East.
For Loeser, who does most of her business in these urban areas, 2020 was her best year since becoming an agent a dozen years ago. Her team sold $15 million of real estate, up 25% since 2019, she said.
“You can list a house two minutes from downtown and will probably have five offers in the first 24 hours,” she said. “There is a younger contingent that is happy to be in those urban areas and will buy that house from the person who wants to vacate.”
Buyers looking in Pittsburgh have changed their preferences during the pandemic, paying a premium for yards and larger houses, said Kelly Hanna Riley, vice president of residential sales Howard Hanna Real Estate Services.
“Buyers in the city have to be ready to go—they can’t pause,” she said. “They have to know they might go over asking price.”
This article was provided by Bloomberg News.