When COVID struck, residential landlords took a significant hit; people couldn’t afford to pay full rent, moratoriums prevented landlords from evicting tenants for non-payment of rent, and the government program designed to compensate landlords for lost rental income was laughable at best. It appears that residential landlords are now experiencing a rebound that bodes well for their financial stability; rental prices have surged to a record-high.
In September 2021, the median rent in large metros (including surrounding suburbs) increases to $1,654, 13.6% higher than September 2020. As far as landlords go, this surge in rental pricing coincides with the real estate market hitting its cap in terms of what people can afford; home prices have reached record highs, and many would-be buyers are being funneled into the housing market for want of sufficient funds to buy a house. Moreover, the moratorium has ended, and many homeowners are being forced to foreclose on their homes and move into rentals.
The largest increases in rent were seen in Miami, FL (31.6%), Riverside, CA (26.5%), Phoenix, AZ (26.4%), AND Las Vegas, NV (25.9%). If we look at the increase in rent as a proxy for increase in demand and therefore the return of large numbers of people to major cities, these numbers suggest that the economy is well on its way to recovery. Of course, the increase in rental prices will bring problems of their own, but have several months of receiving the short-end of the stick, it appears residential landlords are back in business.
At the Chernov Team we understand that knowledge is power and knowledge of how various sectors of the housing market are performing, and what that implies, is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.
Residential Landlords Finally See Return on Investment After COVID-19 Policies Left Them Lagging Behind
