One of the most eye-opening aspects of the pandemic’s impact on the economy has been in housing. The housing market has been on fire since Spring, with a gigantic boom in suburban home sales. The big question is whether this is the start of a sustained trend or a more temporary one. Most analysts think it was just a short-term move. Overall mortgage applications have flattened in recent months at the same time as listings have been rising, showing that supply and demand are changing. Additionally, there is a divergence in the type of demand. Demand for high end homes is stronger, but for cheaper housing it is much weaker.
FINSUM: The pandemic has affected those at the lower end of the socio-economic latter more strongly than those at the top, and combined with how the virus itself has incented social isolation, it is no wonder suburban housing has boomed. That said, it seems temporary almost by definition.