Introduction
The COVID‑19 pandemic changed many assumptions in the world of real-estate investment. From record-breaking price surges to remote-work driven migration, the housing market has had to adapt. For many buyers and investors alike the big question now is: Is buying property still worth it in this post-pandemic era? The answer is nuanced. It depends on timing, geography, risk appetite and long-term strategy. In this article I’ll walk you through how the market has shifted, what factors matter most now, where opportunities (and pitfalls) lie—and how to decide if buying property makes sense for you.
What changed in the housing market after the pandemic
Rapid price appreciation, then flattening
During the height of pandemic uncertainty, housing prices in many markets surged. According to Brookings Institution data, U.S. home values jumped by roughly $95,800 between Q2 2020 and Q2 2022 — equivalent to about 17 % annual growth, significantly above the typical pre-pandemic ~6 % per year trend.
Yet more recently the pace of growth has slowed or stalled in areas where supply and demand have rebalanced. For example, markets with active inventory above pre-pandemic levels have seen weaker price growth.
Shifting demand patterns
Remote working changed how people value location and space. Research from the National Bureau of Economic Research found that an additional percentage point of remote-work prevalence implied about a 0.93 % increase in house prices from Dec 2019 to Nov 2021, after adjusting for migration.
Simultaneously, high-density urban rental markets softened—some central business districts saw rent declines exceeding 10 %.
These shifts opened up new questions: Is suburban or rural buying smarter? Will urban core values rebound?
Interest rates and affordability headwinds
With price growth elevated, affordability became a major hurdle. Elevated mortgage rates, higher down-payment requirements and stretched household budgets all weigh in. Simply put: buying isn’t as affordable for many first-time buyers as it might have been a few years back.
For prospective buyers, this means the calculus of “buy vs rent” looks different now than during the pandemic boom.
Pros of buying property now
Building equity and inflation hedge
Real estate remains one of the few asset classes where, if held long enough, you might benefit from both inflation protection and forced savings (via mortgage amortisation). Especially in markets where supply remains constrained, ownership still offers the chance to lock in a large portion of your housing cost.
Long-term value creation
If you’re buying with a long horizon (10-20 years), many of the short-term uncertainties fade. Historically, real estate has provided steady (though not spectacular) returns in many markets. The structural story—population growth, urbanization, housing scarcity—remains intact in many regions.
Opportunity in selective markets
Not all markets are equal. Areas that didn’t surge as much during the pandemic, or that are seeing renewed demand, may offer value. For instance, as cyclical forces regain strength in real estate and interest-rate cuts begin, transaction activity can improve.
Thus, for discerning buyers, there may be bargains or at least more favourable entry points than during the peak frenzy.
Cons and risks to buying now
High entry cost and limited upside
Because of the pandemic surge, many markets now price in elevated value, leaving less margin for big appreciation. If growth slows, the risk is that you’re buying at or near a local peak.
Affordability constraints
Higher interest rates and stretched household budgets may push buyers away or reduce demand. That can slow resale markets.
Location and demand shifts remain unsettled
Trends like remote working, migration to suburbs, or re-urbanisation are still playing out. In some cases what seemed like strong buying logic during the pandemic (e.g., large homes in distant suburbs) may now be reversing. For example, one UK analysis found that the “move to coast and country” has started going into reverse—some buyers regret rushing.
Liquidity and holding cost risks
Property is not a liquid investment. If economic conditions worsen, interest rates rise again, or local demand falls, you may hold for longer than expected. Plus, ongoing costs (maintenance, taxes, insurance) still apply.
What factors should you evaluate before buying?
1. Local market fundamentals
- Is inventory tight or abundant? Markets with low supply tend to hold up better.
- What is local job and population growth like?
- Are price-to-income and price-to-rent ratios reasonable, or stretched?
2. Interest rate and financing terms
- What current mortgage rate can you lock in?
- Do you have enough cash or down payment to reduce risk?
3. Holding horizon and exit strategy
- Are you planning to live in the property or rent it out?
- How long do you expect to hold it (5, 10, 20 years)?
4. Changing lifestyle & work patterns
- Will remote/hybrid work remain a factor locally?
- Are amenities or transport links likely to improve or deteriorate?
5. Risk tolerance and contingency plans
- What happens if you need to sell sooner than expected?
- Can you cover holding costs during vacancies or downturns?
Is it still worth buying property in 2025 / 2026?
The simple answer: yes, but with caveats. If you buy intelligently, in the right location, with a realistic understanding of financing and a long horizon, property ownership can still make sense. But if you assume the pandemic-era explosion in value will repeat, or you plan to “flip” quickly, the odds are less favourable.
In many markets the “easy money” has already been made. That means your margin for error is smaller. The era of 30-40 % annual home-price increases is largely over. Now we are looking at more moderate growth—or potentially flat to modest appreciation in some regions.
That implies buying must be more about what the property gives you (liveability, stability, forced savings, hedging against rent inflation) rather than expecting windfall gains.
Practical advice for would-be buyers
- Be selective: Don’t just buy because “everyone else is”. Pick markets with solid fundamentals—job growth, supply constraints, amenity improvements.
- Lock in favourable financing: A lower interest rate adds significantly to your long-term returns.
- Budget for costs: Down payment, closing costs, maintenance, taxes—all should be factored in.
- Plan your exit: Even if you intend to hold long-term, know the scenario for earlier exit if necessary.
- Think flexibility: If you’re buying now, try to choose properties that appeal to broader markets (e.g., good schools, accessible transit, safe neighbourhoods).
- Beware of “move-in frenzy” mistakes: Properties bought in panic or in flight from wrong reasons may underperform.
- Assume slower appreciation: Build your financial model around conservative price growth, not boom-era figures.
Conclusion
Buying property in the post-pandemic era remains a valid, and in many cases wise, decision—but it’s no longer a guaranteed path to large gains. The honeymoon phase of ultra-rapid appreciation is mostly behind us. Buyers must now be more discerning, realistic and patient. If you approach it with the right mindset—focus on long-term value, proper financing, and strong location fundamentals—then property ownership can still be a very worthwhile investment.If you found this article helpful, consider subscribing for more deep dives on real-estate, investment strategy and market trends. Your next step: assess your local market, run the numbers, and decide whether now is the right time for you to buy.
