Like virtually all other industries in existence, the rental and housing sectors sustained quite a heavy blow with the outbreak of COVID-19. Rest assured, this global pandemic cast a large shadow over all facets of these markets ranging from demand profile to rents and lack of affordable inventory.
Now, when we are gradually leaving the pandemic behind, the question we need to ask is will this sector finally stabilize and offer sellers and especially buyers some much-needed sense of certainty?
Well, the world still faces dozens of other problems like the ongoing European crisis, inflation, and rising prices. Will these developments prove to be Justas disruptive as the global pandemic or we are moving in the direction of a more stable housing market?
Let us try to find that out together.
The return of seasonality
During the pandemic, the rental prices were dictated by the various COVID-19 variants, lockdowns, and wide population contamination. That threw the traditional goings of the rental market completely off the rails and make long-term forecasts virtually impossible. Even though the present-day world is still burdened by the problems above neither one of them should affect the market like the coronavirus. So, we can expect to see the rental and housing prices going back to their previous demand patterns – the rents will surge during the winter and summer and gradually cool down with the coming of autumn.
The record-breaking prices
As we have previously mentioned, the outbreak of COVID-19 in some cases brought the entire market to a grinding halt. Now, when we are seeing a renewed market activity, the demand is, once more, going through the roof. Unfortunately, this spiking interest in property rentals and new housing is causing a proportionate price increase. Last year, the housing prices experienced a staggering 16.8% increase which caused a similar trend in the rental sector. The strong property performance we are experiencing right now gives the impression that, at least, in this case, market trends won’t change anytime soon.
The renaissance of smaller cities and rural properties
The labor market went through quite a lot of turmoil in the last couple of years. One of the most critical trends we had seen taking root on the global scale was the rise of the remote and hybrid workforce that was no longer bound to traditional business hubs and large-city downtown areas. Having the freedom to work from wherever they see fit, these people have, in a lot of cases, abandoned their old apartments and start moving to places that offer similar amenities but at a lower price. So, if you, for instance, check the Lubbock apartments for rent, you will see this Texan city has gained a lot of popularity in recent years.
The growing interest in mid-term rentals
The present-day rental market is riddled with various uncertainties. That makes both landlords and tenants unwilling to sign long-term, multi-year leases since the next big disruptive trend may offer some more favorable options or force them to move to another location. The short-term rental agreements are also out of the question since they only create confusion and are far too maintenance-heavy. The perfect middle ground between these two extremes will be most likely found in the mid-term rentals that will create market stability but keep the options on the table in case of some major development.
The ongoing popularity of virtual tours
During the recent lockdowns, the future tenants had no other choice but to search for prospective rentals through virtual tours. According to a 2021 survey published by Statista, 31.5 of respondents said they have used more virtual tours than during the previous year. This form of research simply offers more convenience, so we expect this trend to latch on in many years to come. What does that mean for the real estate sector? Well, the realtors will still play a key role in this process. They will just need to focus on high-value properties and closing down the deals and use virtual tours for initial engagement.
Smart homes becoming a standard
Finally, we would like to remind you that, not so long ago, sustainable properties were seen as a novelty. These days, though, sustainability has become one of the most important market requirements. Well, the next amenity that will go down a similar path are definitely smart capabilities that are making an integral part of the modern lifestyle. Furthermore, smart communities and smart cities are no longer abstract ideas discussed only in futuristic circles. These things are happening right now, and smart homes will be their building blocks. So, expect this trend to pick up the momentum.
So, we hope these few mentions gave you a general idea about the direction in which the housing and rental markets will be moving in the following years and hopefully outlined a couple of strategies you can implement to use these trends to your advantage. The world we live in has become very uncertain in recent years. But, even this fact gives us something to base our projections on. That is perfectly ok since as long as we are going in the right general direction, we can only keep going forward.
