The economic impact of Covid-19 is staggering. Ten million workers in the past 2 weeks have filed for unemployment. The Dow Jones has lost about 30 percent of its value. And now the virus is hitting the housing market.
“Job losses are already affecting demand for apartments,” says Andrew Rybczynski, managing consultant for CoStar Group. “The evidence is apparent in daily rent changes.”
Rents are falling.
In a normal economic environment, spring is the busiest time for the rental market. markets. But as the weather gets warmer, fewer potential renters are visiting apartment websites. If you’re sheltering in place, you won’t be leaving your current residence to go shopping for apartments.
Luxury apartments are most vulnerable to this crisis, and the least expensive multifamily apartments that serve lower-income people are of little interest to people already stressed about money.
If there is a tiny silver lining, it’s that middle market properties should fare better.
Read on HERE.
Mr. Willig engages and coordinates a professional team of real estate brokers, general
contractors, leasing agents, and property managers in order to rehabilitate, lease and maintain the properties he acquires for SpringView Investments. He has over 20 years of finance and accounting experience.