Will the cost of rent and housing go down cause of the Covid19 pandemic?
- Raymond L.Lv 51 month ago
Yes, But only if the fear mongering media is successful in making this continue for months to come, Right now like 70% of laid off workers are getting more on unemployment than they would if they were working,
Right now many small business owners are getting screwed over left and right.
If the unemployment rate of over 14% continues for long, YES undoubably it will negatibvely affect housing.
I live about 10 miles out of downtown Portland Oregon and i think I am seeing housing costs go down some, not a lot but a little.
EDIT- i am just reading some of these answers and I have to disagree with some of them, well, you cant get a loan without a job, unless you have cash, SO, of course property COULD go down, also we are overdue for a real estate correction. Even if the coronovirus thing hadnt happened
- curtisports2Lv 71 month ago
In selected markets, maybe. People need a place to live. What drives down rents is an oversupply of rental units for the market. This happens when more people can afford to buy houses and mortgage payments are lower than rents. In tough economies with people out of work and unable to get mortgages, the supply of property for sale can rise, and those people who can't buy are left with no choice but to rent. Rents rise or stay where they are.
- linkus86Lv 71 month ago
Not for residential real estate, but I expect it to definitely effect the commercial real estate market. There are a lot of empty commercial offices around the country and a seriously decreased demand.
- Christin KLv 71 month ago
The trend is showing the exact opposite. Rents and housing prices are rising.
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- blackgrumpycatLv 71 month ago
Landlords still need to pay their own bills such as a mortgage on the property. Their mortgage providers are unlikely to drop their prices, so why should the landlords?
- Obi Wan KnievelLv 71 month ago
Not likely. Here's why.
Pandemic or no pandemic, people need to live somewhere. Real estate is the last true free market in the free world, capitalism at it purest form. The only thing that will make real estate values drop is if the supply is bigger than the demand, and the demand is huge. The demand doesn't decrease due to a pandemic. Purchase / sale activity might be slowed down, but slow activity doesn't affect property values.
There might be a temporary law prohibiting rent increases during the lockdown, but the key word is temporary.
- Anonymous1 month ago
rent almost never goes down.
- R PLv 71 month ago
The real estate prices will probably drop, but rents won't.
- PearlLv 71 month ago
it might, you never know
- DzeLv 71 month ago
i wouldnt bet on that ... with all the money theyve pumped in and a shton of people acting like they dont want to work and be productive prices are likely to skyrocket on everything in the coming months ..