COVID-19 has not only exposed us to a health crisis but has produced economic hardships for many. Events as momentous as Coronavirus don’t just impact us one second, and then drift away. The truth is they impact how we do everything. Our values, choices and behaviors are now different as a result of this virus.
You might have found yourself asking, what is going to happen to the housing market? Will we continue to see new homeowners purchase within our community? Many professionals are speculating, and here are some things that might be change within the housing market because of COVID-19.
Mobility will be low in the near-term
- Within the next few months safety and economic uncertainty will keep more individuals in their current homes.
- Geographic mobility normally declines during downturns. This is also a result of lack of job opportunities.
- Social distancing will cause individuals to stay put, in fear of spreading infection.
- After the peak, people are going to continue to move. People who move with jobs are going to consider transitioning to be closer to family. Individuals facing financial hardships will move once eviction moratoriums are lifted.
Remote work will cause companies and workers to reconsider their location
- Employee who have remained productive during this pandemic may not return to their regular offices for work, there will be no need to pay for the unused office space.
- Companies who choose not to resign leases could make a big impact in the long run. However, currently they are seeing these trends concentrated to technological heavy cities like Austin and Denver.
Rent will decrease for some, but affordable housing will be hard to find
- Less people moving, in turns means less homes available. Affordable rentals were already difficult to find. Discovering affordable housing will continue to get more difficult.
Homeownership plans will have to wait for many young renters
- In 2019 it was found that “nearly half of millennial renters have no down payment savings”. Coronavirus has most likely made finances even more tight. The combination of supply and money will most likely delay these home buyers within their process.
According to Igor Popov, chief economist for Apartment List, we have with no clear idea as to how and when a recognizable version of normality will return. Although, we might have a lot of uncertainty in regard to this topic, only time will tell how these trends will continue to unfold. In the meantime, it’s best to stay optimistic and focus on making your homeowners happy.
Be sure to take a look at our post next week where we will continue this series, and include ways to cope with these trends.