Will Rental Prices Go Down After Coronavirus?

Since Spring, which is the time when the coronavirus has hit the economy of the US, the rental rates throughout many expensive cities have dropped down by a lot. Cities like New York, Boston, and San Francisco, facing the most issues during this time. It made property owners have no other choices other than to bring in new services, offers, and discounts with the hope to attract new renters.

With a decreasing rate of 0.3% from July, the average rental price in the USA has gone down to almost $1,771 per month starting from August. Apartment prices were always growing since 2015. But with the coronavirus, the growth rate decreased a lot, and then finally, it started to drop to 0.7%.

Since the pandemic hit the most in the expensive cities, the dropping of the rental rates in the urban areas is far more than the towns and suburb areas. There is a valid reason behind it. Because of the lockdown, many of the people are losing their jobs and passing idle time.

Meanwhile, others are working from home. Also, the students are either having their educational institutions closed or doing their classes online. So, the majority of them are either moving back to the countryside to live with their family or moving to apartments with lesser prices. Some are doubling up with friends not finding any Apartment searching solution. All these activities are affecting the rental price in the urban areas hard, according to the experts.

Also, the students are either having their educational institutions closed or doing their classes online. So, the majority of them are either moving back to the countryside to live with their family or moving to apartments with lesser prices. Some are doubling up with friends not finding any Apartment searching solution. All these activities are affecting the rental price in the urban areas hard, according to the experts.

Graduate students aren’t moving to the city to find new jobs as it is too rare in recent times. Most companies aren’t hiring any new employees. People are going to spend the quarantine with their friends and family in their home. Without any jobs, it is normal that the demand for lavish apartments will drop a lot.

Remember that there is also no surety of when the pandemic may end. This makes the landlords unsure of when to stay prepared. For all these, experts are predicting that the prices of the apartments may decrease further this year and also at the beginning of 2021.

Also Read: Complete Checklist for Apartment Cleaning Before Moving Out

According to the experts, the property managers are being prepared for whenever the pandemic ends. As part of that, instead of reducing the rental rate, some of them are offering concessions. The rate of discounts and offers has increased by a lot from the previous months.

They are doing this so that they can pick up the situation as soon as the pandemic ends and can raise the price again. It means that you can expect a rise in the rate of apartments following the end of the coronavirus. So, the best idea will be to rent apartments right near the pandemic ends because that’s when the rate will be the lowest before picking up again. 

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