The ongoing COVID-19 pandemic has transformed almost every aspect of society. Rental trends are no exception. It’s a dangerous time to invest in rental property because of the uncertainty.
With that said, the right investment could be very profitable thanks to the ambiguity of the markets. This article lists what kind of rental market trends you can expect to see in 2022.
1. Renting Outside of the Cities
The ongoing COVID-19 crisis means that many workers are continuing to work from home. After over a year of not commuting into the office, many workers are starting to reconsider their city center locations.
Due to the pandemic a lot of things that were once important no longer matter. For instance, having good access to public transportation is much less relevant when you have nowhere to go.
Many companies are indicating that working from home will continue, even after COVID-19 is defeated. This means that many workers will consider renting outside of expensive cities.
Some companies are currently offering “big city” wages, without the requirement to live in the city. This means that many workers can afford to rent incredible property outside of the bigger metropolitan areas.
This trend is also impacting landlords of commercial properties. With so many companies working from home, the demand for office space is going down significantly.
2. A Return to the City
While the working from home trend is unlikely to ever revert back to pre 2020 levels, it seems likely that many companies will move back to the office. This means that in 2022 we could see an increased demand for residential and commercial property in inner cities.
This could lead to a shortage of available properties and drive up the prices. With that said, it’s hard to tell what the future of work holds. There could be a mass exodus back to the city as the majority of companies insist on returning to the office.
3. New Construction Faces Delays
Thanks to the problems and uncertainty caused by COVID-19, many building sites have been left unstaffed. Due to social distancing restrictions, it hasn’t been possible for many construction projects to continue.
Not only have construction sites been shut down, but there’s also been a shortage of various materials. For example, the pandemic has significantly increased the cost of lumber.
4. Continued Uncertainty
Problems with the vaccine rollout and potential mutations of the COVID-19 virus mean that no one can be sure what the market will look like by the end of the year. In this kind of crisis, making the right property investment decisions could potentially be very profitable.
With that said, there is a lot more risk associated with investing. For example, thanks to the uncertainty, you may be able to purchase a commercial property for a lower price.
No one knows what a post-pandemic world is going to look like. This is especially true for rental market trends. If you’re considering getting into the rental property business, get into contact with a property management company.
Uncertain Rental Trends
As you can see, it’s still quite unclear how the post-COVID-19 world is going to look. Due to the ambiguity at play, you should be careful when investing in any kind of rental property.
If you want to learn more about rental trends, check out some of our other blog posts.