The real estate market, specifically the suburban market, has been on fire for the past 14+ months. In fact, it was only about 12 months ago that multi-family units such as apartments in big cities were the last place Americans wanted to be. With fears of the spreading pandemic and increased efforts for social distancing, most big cities saw many of their residents moving out to suburban neighborhoods.
According to Gay Cororaton, senior economist and director of Housing & Commercial Research at the National Association of REALTORS®, the apartment market appears to be recovering. This is particularly good news for the many urban markets that have weathered pandemic-induced migrations to the suburbs amid remote working conditions and national shutdowns.
The allure of big city living
Although many renters have fled from bigger cities amid pandemic-induced shutdowns, the many things offered by the big city such as entertainment, restaurants, nightlife, and other social aspects have people returning. Realtor.com® recently published a report that found that rent prices in the 50 largest metro areas in the nation ticked up to 2.7% year-over-year in April. This is the fastest growth since March 2020. As the national vaccination rate progresses and more companies return to in-office work, many urban markets may be in for a boom.
Summary
Many rental properties in the urban markets have had to offer various incentives to attract renters into the big cities. With this said, if you are considering a move to the big city, this may be your last chance to benefit from some incentives. As various markets across the country return to pre-pandemic normalcy, the prices in these respective markets are expected to rise quickly. The biggest wild card for the big city markets will be the impact of the remote working environment. What percentage of employees will be willing to return to office-based employment? What percentage of companies will require a return to office-based work? These are critical questions that will greatly impact the recovery of the urban markets.
Are you looking for housing in South Florida? We can help. Contact Live South Florida Realty, Inc. today!
