Escape to the Country? How House Prices in Rural Areas are Increasing

The COVID-19 pandemic has affected our lives in many ways, one being the increase in housing prices in rural areas. Dubbed the "race for space" by one source, urban dwellers find themselves looking for a more spacious retreat in the form of a second home or just swapping their lives for the more rural feel.

The pandemic has made more people desire a more rural life in 2020 compared to 2018. It was found that 48% of Americans would swap their urban life for a life in a small town or rural area: a 9% increase on when it was asked in 2018, as only 39% of Americans gave this answer. This is a stable trend amongst all age groups asked, with 39% of 18-34-year-olds answering they would swap their urban lives in 2020, an increase of 10% compared to 2018.

credit: Movers

As a result, house prices are increasing in rural America. On top of this, housing in these areas is selling a month faster than the previous year. Last year, a typical rural home spent 39 days on the market before selling, however this figure has now decreased by approxiately 29 days, reducing the average selling time to just 10 days. Alongside this, housing prices are reportedly increasing by 16% in these areas, making the median sale price of a rural property $290,592. This could potentially decimate traditional rural communities, as the median income for completely rural areas is around $45,000, which could hinder local people from buying at a price they can afford.

This is being replicated across the Atlantic in areas of the UK also. In Wales, house prices are increasing the most compared to other areas of the UK, increasing by 13% in a year. With such high increases, the average house price in the country has reached over £200,000 for the first time. However, this isn’t the main concern amongst some Welsh people, with some considering the effect on the Welsh language and the nation’s culture, as second homes are being purchased buyers outside of Wales. The Welsh nationalist party, Plaid Cymru, wanted to restrict this, as they vowed in their 2021 manifesto to create caps on the number of homes sold as second homes, and allow councils to impose a 200% tax on homes that were sold as second homes,

The trend is obvious, more people across the western world are seeking to swap their urban lives for a more peaceful rural existence. But why? One of the most apparent reasons for rural living is a yearning for lower stress levels than come with urban living. Due to the countryside’s slower-paced lifestyle, many say that they have more time to explore the outside away from claustrophobic offices. The body is also exposed to natural sensory inputs like vitamin D, which does improve your overall mood.

Another important factor of rural living compared to an urban lifestyle is a sense of community: a feeling that has proved essential throughout the pandemic. A strong sense of community can help residents to interact with more people, and have a stronger sense of safety in the area. There is potentially a correlation to be drawn between the number of Londoners moving out of the city, and the steady increase in violent crime in the capital since 2013/14.

credit: Fast Sale Home

The true effects of counterurbanisation are still unknown, however many can agree that the process is driving the increase in housing prices across the country and the world, ultimately pricing out traditional residents. Will we see a continued rise in urbanisation, or will people decide that the countryside is the best for them?