It has been nearly 20 years since 9/11 happened. For those of us old enough, we do remember exactly where we were when we saw the first plane entering the Twin Towers. The Airport Security Measures afterwards as well as the many changes in Society might be shadowed by the impact that Covid-19 might have.
While 9/11 and Covid-19 have some similarities in the sense that most of us did not see it coming, there are also definitely a lot of differences. Covid-19 directly impacts everyone where 9/11 was a more localized event and also Covid-19 will last a lot longer.
It is hard to directly see the impact it will have in the long run, but what we do know is that likely Cities will get altered. I am seeing that in my hometown Medellin, where the demand for Apartments is on the decline and the demand for outside living is on a steep increase. People want more freedom and with the revolutionary WFH policies that likely last for the next few years, we will see that not only suburbs might increase and city centers might become less popular.
Who would want to live in a small apartment if he can live in a Suburban House? We will see that people will live further away from their offices. It can be that working from a remote cabin has its appeals to many people, and that cities will become less crowded.
Likely, people will spread more. I am seeing that Colorado will likely be overflown with people from California where the real estate market has reached peak pricing. So many people will be driven out, to make other decisions. It would be appealing to get a great house and have more money in the end of the month. Many people might also start to move outside of the US. Canada comes to mind, but so comes Latin America. I have seen his happening in the last 5-6 years. More and more people decide to work remotely. For a little bit or for a longer period of time.
So yes, I think that Covid-19 will impact the Real Estate Market, but not for the reasons that it impacted before. I think it will equal out the real estate market further.