The cost of apartment renting will dramatically spike in this year 2022 in certain markets according to experts. In fact, even before, the industry had been noted to have a steady increase not until the covid-19 happened and the industry struggled with tenants who lost their jobs and could not afford to pay for several months amid the pandemic. However, after the first wave of the pandemic, the market seemed to storm back especially in the year 2021, and this is one of the reasons why people find general contractor Bay Area and opt for building houses especially when they own a lot.
In the Southeastern part of the United States, markets in rents have exploded during the covid-19 pandemic. In fact, it rose to more than 20% in just one year in cities including Atlanta, Miami, Orlando, and Florida among others. This growth that started in 2020 is said to continue still in the year 2022. Some experts have said that this increase is caused by cases of migration and the demand for space in different cities.
Now that most companies are now starting their operations and workers are now going to offices, people are going back to their rented spaces to work, and this will continue this year. Even despite a skyrocketing increase in rents and a number of people opting for housing and staying in their family, there is no denying that renting will always be relevant especially in cities that provide multiple job opportunities among other reasons. The following includes the factors of this stable demand:
1. The Millennial Mindset
Most people having the millennial mindset do not see the need to own a house as they view it as a liability besides not having an adequate source of income to pay for an entire house. Some people also like the freedom that renting provides them as owning a house entails many responsibilities like taking care of the yard, doing paperwork for the taxes, and more.
2. Demographic Demand Trends
Besides the millennials preferring to rent for several reasons, which affect the housing and renting markets a great deal, baby boomers also prefer to move to warmer places such as North Carolina and Florida. Therefore, places with warmer climates tend to have higher demands for baby boomers or older people than those with colder climates because they have more things to do in warmer places.
3. The Vacancy Rates Has Lowered
According to analysts, the vacancy rate for classes B and C, which are considered affordable renting, has decreased. In fact, it has been the lowest in the last 19 years. And people are using this opportunity to invest and turn their buildings not for residential purposes but for renting business
4. Construction Costs
Affordable housing can be now quite difficult to achieve. On average, the housing can cost up to $120,000 depending on the materials, labor costs, and other factors. This is why most people tend to opt for renting.
The markets are good for renting businesses even amid pandemics especially now that people want to work again.