We were all there--we all saw how COVID-19 has caused multiple economic sectors to decline and subsequently shatter in 2020. Surprisingly, despite the worrying fallout caused by the volatility of the stock market and global trade, the real estate market has somehow managed to thrive. In fact, over 5 million houses were sold in 2020; an impressive 5.6% leap from the previous year.
w, here’s a very valid question that every anxious landlord seems to be asking: will the success of the housing market in 2020 act as a precedent for the housing market in 2021? More importantly, can you expect this industry to remain resilient this year? Many experts respond with a resounding affirmative.
Let’s explore some of the main forecasts for the rental market this 2021 below.
1 - A continuous real estate demand
The pandemic has forced us to make hard financial calls in the past months. While over 5.64 million buyers have deemed it the right time to invest in a new property last year, an even larger market still remains untapped.
After almost a year of assessing work-at-home situations and having the kids around as they navigate their virtual classroom, some families are now ready to commit to renting bigger spaces. Alternatively, there are some who want to give up living in condominiums and shared family structures in lieu of single-family homes.
The point is that the demand for real estate continuous and it doesn’t seem to be stopping this 2021. As a landlord, you can still expect people to check out (and hopefully rent) whatever property that you have to offer.
2 - Virtual tours and digitalized tenant screening
Despite the nostalgia for a once COVID-free world, we have managed to adapt to the demands and protocols that have suddenly been imposed on us. Technology plays the most part in easing us into this new world order.
Naturally, real estate has adapted more tech-advanced ways too.
For one, home tours are now done virtually. Another example is that tenant screening and credit check can now be accomplished without the need for close contact too. If you have yet to set up and explore these virtual solutions, then you might be missing out on a big part of the market.
3 - A possible rise in rent prices
Tenants are hoping for leniency in rent prices this year; landlords are hoping for a rise in the rent this 2021. So will the dice fall in favor of tenants or landlords this year? Data suggests that some cities may be luckier than others, but there might just be a collective increase regardless of the location.