The spread of COVID-19 continues to have unpredictably adverse impacts across the world. The United States, much like the rest of the world, has suffered an exponential loss. This applies to the housing market and regulations followed by property managers.
Experts believe that the changes adopted, as we shifted to the “quarantine economy”, will have a long-term impact. The complete extent of these changes is yet to be predicted. While the reality of eviction has been met with several governance policies, there are only a handful of policies that provide renters with the safety they hope for.
For The General Housing Market
With states protecting renters through moratoriums, suspending evictions and foreclosures, there has been a notable decline in the population actively searching for new homes to rent. This changed the dynamics of the housing market. To create a demand for the same, property managers and renters’ apartment associations have to make their properties stand apart by “pandemic proofing” it.
The pandemic, property managers say, has forced them to make certain tweaks. Some stand hopeful that the pandemic may no longer be an issue for instance in 2024, when projects are completed. However, none are shying away from providing a list of well- equipped amenities. As that would provide the renter with an increased sense of security at least.
Related: Four Reasons You Should Invest In Renters’ Insurance
New changes in the housing market
Here’s a list of some noteworthy changes for property managers and renters. As a renter, you might see these changes at your next apartment hunt, regardless of the disease raging or not.
Property managers must prioritize COVID regulations
Gloves and masks for all employees at the building is going to become the norm and cleaning is going to take on a whole new meaning in apartment buildings.
Excessive routine based cleaning of apartment amenities – elevators, door knobs and any other common areas.
Limit on the number of people that can enter an elevator at once.
Ample supply of hand sanitizers across the building. Some might install fancier dispensers that come with multiple types of sanitizers.
Related: This is why some NYC landlords never have an empty apartment
Shift to a virtual housing market
Limited office hours / shifting to an online administration system entirely.
Pre-booking of common-area spaces via apps available to those living in that particular building. For instance, properties like Gotham West in Manhattan require their tenants to use an app called Amenity Boss – created during the lockdown for tenants to reserve outdoor time.
Virtual collection of bills and rent.
Transformation of the building structure
Decks are now the hot commodity – many buildings (Eg: Astoria Lights, a Co-Op in Queens) might soon extend their roof to double its original size after the pandemic made their dock extra popular.
Alchemy properties, set to start sales on the Upper West Side this fall, are opting for copper in place of steel because studies claim the virus does not live on copper as long as it does on steel. Increased use of copper for handles, gym equipment, etc. is to be expected but at a highly inflated price as copper costs 6 times more than steel.
Social distance gyms will also follow suit. Ashland, a Brooklyn rental, has unplugged every other treadmill they have so runners don’t get too close. To make up for the time lost, their gyms are now open 24/7.
Related: Five of the Most Common Questions About Renters’ Rights
Few changes we can expect in the housing market
Less Shifting And House Mobility
People have been generally apprehensive of moving out amid infection concerns – this poses as one of the biggest threats to the housing market which thrives on people shifting houses. Until we see a vaccine approval close on the horizon, moving will remain a concern restraining people from the market.
However, once we’re past the peak, those wanting a safer housing environment will definitely find themselves doing so. Many construction and upgrading projects might be postponed by property managers instead of facing a complete shutdown.
Property Managers May Lower Rents, But Not For All
Affordability in the housing market, this past decade, has been somewhat of a white whale for most of us. Studies claim that in 2019 alone, a quarter of all renters spent half their yearly income on rent. But with the pandemic and current governance policies, available homes and moving families might both become a rarity. So while competitor rates in some localities might cause rents to fall, this might only be a short term phenomenon.
Related: How Coronavirus Has Impacted Rent Prices In U.S. Cities
Housing Inequality
Income inequality in the U.S. has been exponentially exaggerated in the past decade. Close to 28 million Americans faced evictions this year alone. While the richer have witnessed their housing market prices fall, the bottom 10% has witnessed a sharp incline. The pandemic’s economic trends are likely to make this gap bigger, this paves a profit for property managers. Thus, the future for renters looking to eventually own a home seems much tougher.
The Ever-Upgrading Luxury Housing Market
Following the Great Recession, part of the reason behind construction recovery has been the demanding nature of luxury housing. These property managers offer high-end facilities to those that are willing to pay more. This particular communities in the housing market promises to make their lives better, with higher pay.
Permissions handed to Multifamily Units in the past three years passed a thirty year high. These facilities will continue to offer an exquisite inventory to those willing to seek long-term refuge in their offerings.
Becoming a Homeowner
The past months have made a notable dent in the average millennial’s savings. Those hoping to own a home soon might have to shift expectations and delay home ownership even further. This is because home values are expected to decrease due to low supply of available homes and decreased mobility of homeowners. However, some are considering opportunities abroad, with “properties in Costa Rica” becoming an appealing option for those seeking affordable investments and lifestyle changes in Central America.
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