The COVID-19 pandemic caused a major disruption in the commercial real estate industry. Buyers and renters alike were shy about putting money into office and retail properties as non-essential businesses were closed or forced to move their employees to remote roles. While commercial markets are slowly reopening and gaining traction, residential submarkets are seeing a large uptick from both home buyers and tenants.
The Surge in Residential Submarkets
When the pandemic first became a national concern, people halted their regular activities to focus on staying safe. People who were thinking about buying homes or moving to new apartments put those plans on hold until the first wave of the pandemic passed. Four months later, property investors and real estate agents are starting to see a surge in demand for single and multifamily dwellings across the nation. There are several factors contributing to the upswing in residential markets. As mentioned earlier, cities and states are relaxing quarantine restrictions, allowing people to become more mobile and look for new homes so people that were restricted to look for homes due to lock down are back hunting. The other big factor is job-related. Companies that adopted remote workforce policies saw an increase in productivity and decided to allow remote work indefinitely, so many remote employees are now relocating to places where they want to live, instead of choosing homes based on the length of the commute to work. Another reason is that due to virtual schools and daycare closures families are in need of more space to spread around so they are looking to move to larger houses with more rooms and outdoor space. Home owners in expensive metro areas like New York and San Francisco that are working remotely are now thinking of moving to places with much lower cost of living like Dallas, TX and Tampa, FL while maintaining their salaries.
Opportunities for Property Investors
The upswing in residential submarkets is just starting. Property investors stand to benefit from multifamily rentals, fix and flip projects, and new home construction. After months of dormancy, real estate transactions are gaining steam, and there are opportunities to generate revenue from residential properties. At The Capital Rams, we offer financing to property investors to purchase, renovate, and build residential dwellings. To get the financing you need, contact our offices today.