2021 Sees Huge Growth in Multi-Family Residential Housing Rentals
Multifamily residential housing is growing rapidly by popularity within the housing market for 2021. COVID-19 pandemic has left many people without jobs and therefore options for cheaper housing are pertinent at this juncture. Those who are looking to invest in properties should look for multifamily housing opportunities such as condominiums, apartment buildings, co-living housing communities. Texas is one of the largest growing states for multi-family residential housing, especially in large Metropolitan cities like Dallas, Houston and Austin.
Throughout 2020 and COVID, multifamily residential housing took the least amount of loss in the real estate market. Here are some multifamily residential housing trends for 2021 - and the impacts coronavirus has had on rentals and multifamily residential properties.
Demand for Rentals Up, but Construction is at a Stand Still
Building for most multifamily residential buildings has halted through 2020 and many still aren’t underway yet, so these properties are in high demand right now. Experts predict an increase in renters needing new apartments and the need to rent larger spaces. Since more people are now working from home and spending more time there, they need that extra office or bedroom.
Increase in “Virtual Tours” for Rentals
Due to more people working remotely, many people are deciding to move to somewhere more fulfilling for them. Consideration for commute time has less to do with housing decisions than it did in the past. During COVID-19, many industries had to pivot to digital tours and meetings, which has led to a rise of people signing the lease and moving before ever stepping foot in their new apartment.
Many people have said they prefer touring their future home without a leasing agent present. This leads to more tours and greater ease of convenience.
Rent Flattens for First Part of the Year, Then Increases Due to Housing Shortages
Since many people are still unemployed and several states still have rent moratoriums (click here to view rent restrictions for your state), it’s likely that rent prices will stabilize for the first half of the year. However, there’s a national housing shortage for rentals and multifamily residential housing which will lead to significant rent increases for apartments.
Some states have already implemented “rent caps” to regulate this housing rate increase. Oregon, California, and New York have already gotten on board.
If you are thinking about purchasing a multifamily residential housing unit, this is a great time to buy. While the 2020 recession created an excellent opportunity for first-time home purchases, many people lost their jobs and therefore the demand for affordable housing increased moving many families to multifamily residential housing. Construction delays have created a housing shortage that will only increase as the year continues before this reflects in prices of multifamily units. Not only is this the best time to buy, it’s the best time to make an investment for your family’s future and see dividends increase exponetially!
