Coping with the economic fallout during the pandemic, many places of the country are seeing a drop in rental prices, which is known as pandemic-pricing by many real estate agents. Because of the covid-19 situation and the lockdown, a vast number of people are losing their job. Meanwhile, people who work in government facilities are working from home. As a result, it is being observed a lot that many major cities are losing a large number of renters who are leaving their rented apartments and going back to their permanent addresses.
That is the reason why, throughout the US, many cities are experiencing a major drop in apartment prices. Research by Zumper, which is a media for apartment listing projects, says that during the starting of summer in the US 4 of the rich and modern cities, New York, San Jose, San Francisco, and Boston, have seen a decrease in rents on the medium apartments with one-bedroom. Many apartments in Denver-neighborhoods have become significantly cheaper throughtout the pandemic period.
According to the research by Zumper, the median renting price for one-bedroom apartments has reduced to $3,360. It is 9% lower than how much it was last year. The two-bedroom apartments saw a decrease of 6% in pricing that made it down to $4,420 only. Also, according to a real estate agent from San Francisco, the rents are going down even to 10% or more. Especially, the lavish apartments and high-rises are facing this issue more. The problem is pushing towards exceptional apartments or ones that are located at special places. Because of how the high-end section of the rental market is facing the biggest hits, this is causing serious damage to all the industries related to leasing and real estate activities.
Meanwhile, this situation is understandable from the perspective of a normal civilian. Especially the students or job workers who do not have anything to do at their hands are raising good questions. They are asking why they should stay in a place where everything is shut down. As a result, the majority of them went back to their home towns. Some even started staying with their friends to pass the quarantine together.
For their actions, the renters of those apartments are having no other choice but to decrease the renting price of their own apartments and also providing better services and options. It also affected the simple people who aren’t willing to move to towns or countryside. With all the services, many of them are leaving their respective apartments for a better one.