One of the biggest real estate stories to come out of COVID-19 is what many are calling a “mass exodus” from expensive urban centers. In places like San Francisco and New York City, the kinds of renters who were forking over $2,000 a month for a cramped one-bedroom have moved to greener pastures—often literally—packing up their tiny apartment in favor of more affordable living with room to spread out.
Where did rents increase the most in 2020?
Across the country, demand for multifamily rentals has fallen—especially in buildings with shared elevators. According to a recent Realtor.com report, rents for one-bedroom apartments were falling year-over-year in 37 of the 100 largest counties in the United States.
But it’s not all doom and gloom for landlords right now. Nationally, the market for single-family rentals with outdoor space has soared, and in some cities rental prices have actually increased since the start of the pandemic.
“In rental housing, we are seeing a shift away from high-cost urban downtowns toward suburbs and affordable mid-sized towns,” says George Ratiu, senior economist for Realtor.com. “For many renters, proximity to a large employment center remains important. However, remote work has extended the commute circle outward from the city center to a one–to-two-hour distance. For example, while San Francisco has topped Realtor.com’s list of steepest rent declines, Sacramento and Fresno have experienced rent growth.”
From more affordable metros and Sunbelt cities to popular big towns across—normally pretty warm—Texas, here’s where rents have gone up since the start of the pandemic.
What makes these cities so special? Find out at BPInsights.
What is BPInsights?
Successful investing requires accurate, easy-to-understand information about your properties and the markets you invest in. BPInsights is an exclusive feature for BiggerPockets Pro members that offers a deeper dive into the real estate market. Here’s what BPInsights offers:
- Fresh and unique data. We licensed data from the industry’s top providers to ensure BiggerPockets Pro and Premium members have access to every change in the market, as it happens.
- Property Insights tool. Whether you’re analyzing a new investment or ensuring your current properties are appropriately priced, Property Insights delivers accurate comps to inform your strategy.
- In-depth analysis. Our team of expert real estate investors and analysts break down market trends to help you digest crucial information so you can better manage your investing.
- Proprietary spreadsheets. Download spreadsheets produced by the BPInsights team so you can personalize the data and conduct your own analysis.
Upgrade your investing today
Successful investing requires accurate, easy-to-understand information about your properties and the markets you invest in. BPInsights gives you the information you need to find your next great deal and maximize your current investments.
How do interest rates really affect your investments?
As the country continues to deal with the economic pain and uncertainty that has accompanied the COVID-19 pandemic, interest rates and their impact on the recovery seem to be in the news constantly. To help real estate investors understand exactly what interest rates are, and how they impact their businesses, BPInsights’ resident data pro Dave Meyer took a deep dive on all things interest rates for this month’s feature.
He breaks down:
- The current state of interest rates in the United States
- The affect of interest on housing prices and rent rates
- How interest rates directly impact your return on investment.
Can you turn a profit by repurposing dying malls?
There are a number of ways malls can be repurposed. And repositioning struggling assets can lead to huge benefits for those willing to think outside the box, so to speak. Think about dead factories converted to cool apartments, or dated filling stations turned into hipster restaurants, or mountain caves used for moonshine storage. Wait…
So, let’s think outside the box together and see if we can get our creative juices flowing. What are some ways malls have already been repurposed for profitable enterprises?
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