COVID-19 changed a lot about the housing market, from renting to homeownership, and the quakes are still being felt. A lot is different now than it was just two years ago, and it’s hard to keep track of everything that shifted and why it happened.
Here’s what you need to know:
Why Landlords Are Being Pickier
Although many landlords were afforded help from the government if their tenants were unable to pay, more are angry that their tenants haven’t been evicted despite not paying their monthly rent.
As a result, some landlords now require higher credit scores, more references, and larger deposits to protect themselves against tenants who would abandon their lease.
Why Renters Are Wary
Renters are wary about many landlords because housing has been so unstable for the last two years before the pandemic started. Horror stories about people getting evicted despite a hold on evictions have made the rounds, and others are still not up to their prior earning potential that they had before COVID-19.
Rent prices have also increased by incredible amounts, with the national average going up by 11.9% in the last year alone. Due to this, renters are terrified of being thrown out and feel taken advantage of. This has turned many people towards wanting to buy their own home at any cost.
Why Is The Market So Wild?
In early 2020 when COVID-19 started hitting the USA, there was a freeze of construction and manufacturing. Because of this, there’s still a shortage of supplies and materials, including basic things like wood that would be used for structures.
On top of this, people who could stay gainfully employed were able to set aside money and build their credit score while working from home. On the other hand, those who didn’t lose their jobs could make their income and create the perfect living situation so that they could afford a home.
Now there’s a housing shortage, and hundreds of thousands of buyers are desperate to get a piece of property that they can call their own instead of struggling with the classic question of ‘should I rent or buy a house?’. This low supply and high demand have turned into a buyers’ market that has rocketed prices by 35% in some areas.
Although there have been some price decreases in mid to late 2021, it is still hard to tell if these are signs of a trend or are just a momentary blip.
Is There Any Way To Predict Future Changes?
If there’s anything that COVID-19 has taught us, it’s that there’s no clear path that the future is going to take, and it’s nearly impossible to predict it. For example, many are saying there might be a housing bubble burst on the other side of this market rush, but since production of houses slowed in recent years, there’s no clear sign pointing to this being true.
For now, one thing is clear. The housing market is fluctuating wildly, and if it’s not within your grasp right now, you have some time to ride it out and build your credit score and savings. It might be tempting to start looking at some properties and get your own home now thinking it might get worst if you wait, but it is better to wait, build your savings and plan ahead. Please don’t rush into a property that you can’t afford, or you’ll regret it more than renting.
