Away from dense living to single family homes?

Question

What are investors thoughts here? With covid-19, will people shy away from buying or renting dense dwellings like condo, apartments to single family homes?

Mike Dymski · Answer

If the nation's beach towns this past weekend are any indication, people are not going to shy away from anything.

Too answer your question, it's too early to know...and it would take a tremendous amount of research.

Michael King · Answer

No. We are creatures of habit. And if something does not affect us directly, we tend to ignore it. Like the check engine light if the car's running just fine.

Russell Brazil · Answer

An overreaction by people assuming cultural shifts that will likely never materialize.

Pat L. · Answer

A couple of millennials we know told us that to avoid their condo common pool area & party room they will rent a nice Airbnb suburban home for a weekend to chill in the pool & have a dinner party/BBQ with just a few close friends. Several are now looking to rent homes together rather than high density condo living.

Daniel A. · Answer

Hello Joo,

This COVID-19 pandemic has caused a lot of concern amongst the real estate world. But the thing about it, many people are intrinsically wired to prefer a certain type of living arrangement. While some people will allow fear to guide them, most will continue on living in the midst of a dense city. And if ten people move out of the city, thirty people will vie to move in. I doubt that this virus will cause city rentals to dip to a point of concern for investors.

And even if it does, I believe it will only be a momentary blip. Cities offer so much in the way of jobs and entertainment, and a lot of people aren't willing to add to their travel times, especially if they don't have a car. Then you must consider what the landscape will be once a vaccine becomes available. Cities are still prospering in light of the flu, rubella and tuberculosis. We have vaccines and we are not concerned with them. Eventually COVID-19 will fall among those.

That is looking at the house rental front. I cannot speak to commercial real estate.

Away from dense living to single family homes?

Away from dense living to single family homes?

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