As has been documented here and on other sites, the 2020 housing market was incredibly strong. With this said, many renters opted to purchase a home last year as well. With many Americans adjusting to life during a pandemic, we saw many people moving to suburban areas and away from big cities. Of course, many companies shifting to a remote working environment has also been a big influence on these trends. So what about the rental housing market? What should we expect in 2021? Below are a few predictions for the rental market.
- Rental prices should stabilize for the first half of 2021: Prices for rental apartments, particularly in big cities, should see some stabilization. In come cities, we could also see some price decreases. With many Americans losing much of their income during the various shutdowns across the country, this will continue to impact the demand for rental housing. With the introduction of various vaccines, we should see the economy begin to open back up and more people moving back into the cities. It is possible that we will see a rebound in rental housing demand and prices during the second half of the year.
- Affordable housing demand will continue to grow: Affordable housing has been the single greatest area of need throughout the country. We expect that this will continue, particularly given the financial impacts of the pandemic.
- Remote working environment will continue to impact the market: As has been the case in both the rental and purchase markets, remote working environments adopted by many employers will continue to shape the real estate market. For many Americans, this will mean that they will not need to factor in their commute to work when deciding on locations to rent a home. As demand rises in various areas, so will the rental prices. Initially, big cities may see a decrease in rental demand and prices. However, potentially lower prices in these cities will likely attract tenants once again in the second half of the year.
In South Florida, we expect to continue to see increased demand for both purchase and rental properties. During 2020, many Americans realized that they could work remotely from tropical locations such as South Florida without sacrificing productivity. It is likely that this trend will continue in 2021, with many companies becoming more open to these remote working environments. Furthermore, some companies are even analyzing this newly found business model as a way to reduce the overhead of office space.
At Live South Florida Realty, Inc., we have assisted many clients relocate to The Sunshine State. Are you ready to move to paradise? We can help. Contact us today!