2020 and COVID-19 have shown us some fairly fascinating results and trends in both the commercial and the residential real estate markets, and today’s topic from an article on Wealthmanagement.com is no exception. First off, there were almost a 1.5 million more homes sold in 2020 than there were in the previous year. That’s a lot of houses! This doesn’t count all the people who started remodeling and adding on to their existing homes, because we all know about material shortages and labor shortages in the housing market. In commercial real estate, typically when you see a sharp increase in residential home sales, you would see a corresponding decrease in the number of multifamily units being built and apartments being occupied. You’d see a decrease in the existing multifamily occupancy. Not so for 2020! So we see both an increase in occupancy rate and an increase in the number of multifamily units being built in 2020, and occupancy rate and lease rates seem to be highly accelerated from what they were before.
There doesn’t seem to be any suggestion of why this happened. Maybe corporations are renting apartments so their employees can travel and not be in offices and in danger of COVID-19. Maybe an accelerated divorce rate is part of the explanation to this. Regardless, it’s fascinating, and it all around seems like a good time to be investing in real estate in most markets. Now, remember all real estate is local, so before you start looking at real estate investments, you need to be paying attention to what’s going on in your local market from the city on down to the neighborhood, because you can be in a great city and and still buy a bad piece of property.
This is the type of thing that we help corporations and businesses do, selecting real estate for occupancy or determining their needs. That’s all part of the executive leadership that we provide, so if you’re curious about how we could help you, give us a call.