With the pandemic and the economy in its current state, will apartment prices begin to drop?
- curtisports2Lv 73 weeks agoFavorite Answer
No. If anything, rents will increase. If fewer people can afford to qualify for a mortgage to buy a house (because they aren't working), that forces more people into the rental market. What pushes down rents is when more people own houses and are leaving the rental market.
- SlickterpLv 73 weeks ago
Demand is not lower, so I can't imagine it will.
- Coffee DrinkerLv 73 weeks ago
Apartment prices are set by supply & demand.
Are there fewer people trying to live in apartments? - no, there are actually more people who want to rent because there are fewer people who are willing and able to commit to buying their own home.
Are there more apartments available? - again no, very few new apartments are being built in most areas. And there isn't exactly an abundance of people with money to invest in buying houses and turning them into rentals.
So with more demand from people trying to rent a place to live, and less supply of rental homes available, rent prices are likely to increase.
- MaxiLv 73 weeks ago
Unlikely...... prices are due to market forces, so while more people are likely to be renters and not owners prices will stay the same or rise rather then lower
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- SumDudeLv 73 weeks ago
Not by much (if any). Landlords still have bills to pay, and people still need places to live - even if rent eats up half of their income. Some people will sell their houses to end the mortgage debt and have some profit to use to rent a place. On the flip side, some economists are predicting a much greater number of homeless people. So, only if landlords cannot get tenants will prices come down.