2020 shook up the housing and rental markets. What can we expect to see this year, especially in the rental market?
The housing market will continue to see gains as more consumers become homebuyers, a new report from Apartment Guide said. Historically low mortgage rates are partially to thank, as well as the large increase of people working from home. NAR predicts home sales will reach 5.5 million this year, the highest in 15 years.
Rental prices are expected to remain the same through June, as urban areas adjust to an influx of renters moving to the suburbs. “The big question is how many of them will stay in the less expensive areas they have relocated to and how many will return to urban areas,” said John Loper, an associate real estate professor at the University of Southern California, in the report. Additionally, it is expected that less people will be moving to work, as the work-from-home model becomes the new normal for so many organizations.
However, apartments will most likely continue their trend of virtual events to attract would-be renters, as well as entice current renters to stay. Virtual tours for apartments will continue to be a popular mainstay and Zoom will not just be for work and game night with family. Some apartment buildings are hosting virtual fitness classes, as well as other activities, like wine tastings, as part of their amenity services.
Naturally, there are hiccups expected in 2021. With an increase in cost of supplies like lumber, badly needed new housing construction may face delays, which would impact housing inventory. As eviction moratoriums are lifted, landlords may have an increase in evictions as well, leaving vacant rentable properties.
Not surprisingly, affordable housing will continue to be in demand throughout 2021. With low mortgage rates expected to continue, would-be homebuyers will seek out affordable housing, and settle for renting if necessary.