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REAL ESTATE MARKET AFTER THE PANDEMIC

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Like every year, 2020 started as usual, but little did we know that COVID-19 would hit us all like a thunderbolt. Almost every part of our daily lives was directly or indirectly affected by the virus. Like others, the real estate market too was affected. Buyers and sellers on the Homefront were severely impacted by the sudden events of lockdown and the pandemic. Most people fled big cities and started moving to the suburbs,  increasing the demand for houses there. Locked-down families started struggling with lesser space and craved bigger homes. The landlords were struggling to get the rent from the tenants, who were unemployed due to the pandemic. This wreaked havoc on the market, especially on the real estate markets on the Homefront.

CRUCIAL ISSUES IN THE REAL ESTATE MARKETS

After the lockdown, the jobs came back across the US. People have started to rent out and buy bigger houses. This has put more pressure on the already competitive market. This housing shortage can continue for years before self-correcting, some experts have predicted. As there was no building and a labor shortage during the pandemic, the construction costs also soared. These price rises were a result of the disturbances in the supply chain and workers’ shortage.

WORK FROM HOME FACTOR

With more companies adopting a work from home culture, migration to the suburban areas from big cities has increased. For this population tally, the experts have predicted a rise in migration in the future as well, like new yorkers moving to Kensington or New jersey. There can be a rise in demand for single-family homes.

PREVENTIVE MEASURES BY THE FEDERAL GOVERNMENT

The stimulus provided by the federal government for COVID-19 related economic recovery has helped the real estate market to bounce back. Funding has helped the tenants and the landlords. They can now pay rent, mortgages, and other expenses. Funding provided directly to small businesses and landlords has once again opened up the prospects of real estate investing.

COVID-19 AND AFFORDABLE HOUSING

By definition, affordable housing means the property’s price is not more than 30% of the household’s total income. According to The Washington Post, rents have gone up by 7% in 2021, and this trend will continue for some time now. The US News reported that there might be a shortage of 6.8 million rental houses in the US.

INVESTMENT PROSPECTS

In the lockdown, the e-commerce sector flourished seamlessly as people did not prefer traditional brick-and-mortar stores. So, there was an increase in demand for warehouse spaces for storing goods. According to an estimate by millionacres.com, around 330 million square feet of space would be needed for housing goods for online orders by 2025. So, by having such potential, the industrial and distribution properties have got the best investment prospects. Single-family housing has also brought significant investment prospects as more and more people of the same demographic move to suburbs and demand single-family houses.

 REAL ESTATE MARKETS TO WATCH

Raleigh and Austin are the two hottest real estate markets to watch in the USA. Houses listed for sale in Raleigh were on the market for a mere four days as of July this year. On the other hand, Austin is showing an increase of 42% for the houses than last year only. Demand in the area is being fueled by easy loan availability and work from home culture.

CONCLUSION

Covid-19 has brought some unusual and unprecedented changes in the Real estate market. Of course, some investment prospects have changed as the market accommodates changes due to many different factors. But now, as the economy continues to recover, real estate too has changed its course and once again is attracting investors, buyers and sellers.

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