There have been dramatic changes in tenant demands with an unexpected massive migration from downtown areas, leading to a sharp drop in rental prices in places like New York and San Francisco towards the end of 2020 – Logan Ransley, co- founder of Landlord Studio
SAN FRANCISCO (PRWEB)
July 20, 2021
Landlord Studio has released its latest National Rent Index, which combines national data with their unique data set on current landlords. The report offers new insights into the changing landscape of the rental market throughout the pandemic.
Occupancy rates fell 1% in the first half of 2021, according to the report – as landlords, unable to evict due to the federal moratorium on evictions in effect until July 2021, are particularly selective towards new tenants . Additionally, rents take longer to arrive with a 4% year-over-year drop in rents collected by the April 2021 due date. A trend that suggests that many tenants are feeling the financial repercussions of the pandemic, the financial pressure, which is passing on the owners.
Despite this, an under-supplied market has resulted in record appreciation and growth in rents in the real estate market. Low inventory that led to affordability issues led the national median home price to hit $ 350,300 in May 2021, up 23.6% from May 2020 according to Zillow.
In addition, rents show good growth nationally compared to last year. June 2021 saw a 4.9% increase in the median rent for a bedroom, year over year, and a 6.5% increase in rents for two bedrooms. This is all the more important given that the appreciation of rents in 2019 was quite stable and that growth was slowed in 2020 due to the COVID-19 pandemic.
These trends in rising vacancy rates and delayed rent collection now make it a tough time for mom and pop landlords, as a single tenant unable to pay rent could be devastating. In addition, high prices and increased risk prove to be a difficult market for new home buyers or investors. However, these rental appreciation and growth trends coupled with historically low mortgage rates now make an especially good time for homeowners with larger portfolios to increase the profitability of their current rentals by lowering their interest rates and by selling underperforming goods to consolidate their assets.
About the studio owner
Landlord Studio offers state-of-the-art property management and financial tracking solutions for real estate professionals. They have been ranked as the Most Usable Property Management Software by Gartner in 2020 and improve the lives of landlords and tenants by equipping them with the knowledge and tools to make leasing easier. Thousands of owners from over 70 different countries are already using Landlord Studio to save time and money by simplifying and automating the rental process.
Read the full report
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