The coronavirus pandemic has caused a worldwide economic struggle. Several markets are hurting, especially non-essential ones, yet the real estate market is thriving. We have noticed that rent prices dropped significantly in more expensive cities such as San Francisco, New York, and Boston.
Rent for a one-bedroom unit in San Francisco, the most expensive city for rent in the U.S., is down 9.2% year-over-year, however, the recent price decline is considered a historic one. In addition, reports show that rent for a one-bedroom unit has decreased by 1% in NYC and 2% in Boston, plus 0,4% in San Jose, CA.
We can see that larger units have also joined the price plunge, with the exception of two-bedroom units in Boston, and San Jose, which have gone up. Take a look nationwide and see one-bedroom rental prices have decreased by a whopping 0.2% in May. Despite the overall falling of prices, some states had an increase, such as Providence, Baltimore, and Spokane. Overall the rent for one and two-bedroom apartments has decreased by 0.5% this year.
Due to the pandemic, rent and mortgage payments are disrupted. As a result, rent growth is slowing and rental demand within large cities has shifted to more accessible areas. Usually demand increases as summer arrives, but this isn't anything the market hasn't seen before. With bidding wars continuing, we see a strong market despite all odds.
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