How COVID-19 is Affecting Rent
The widespread impacts of the coronavirus pandemic are most notable in big cities, where high-density populations are especially susceptible to becoming hotspots for the virus.
One way that the virus has affected Los Angeles is by causing a dip in the price of rent. In May, the average asking rent for L.A. apartments dropped 3.3% compared to the same period in 2019. According to the real estate data tracker RealPage, this is the first time that L.A. county has seen a price drop in rent since 2010. The dip in rent prices, coined by some real estate agents as “pandemic pricing,” is being attributed to the economic crises related to the coronavirus.
The coronavirus has led to a major rise in unemployment, and many of the people losing their jobs in big cities can’t afford rent.
Besides the rise in unemployment, another contributing factor to the drop in rent is the mass exodus from cities. The pandemic has led to many stay-at-home orders in order to prevent the spread of the virus. While being isolated to your home might even be enjoyable if you have access to plenty of space and a backyard, following stay-at-home orders in an apartment is a very different experience. Being quarantined to their homes, tenants in major U.S. cities have opted to leave their apartments and cities in favor of more open spaces with friends and family.
Because of the drop in prices, experts say this is the best time to start renting in a city if you can. When talking about rent in Los Angeles, Del Rey Urban, stated that “right now is probably when you’ll get the best deals you’re going to find” because “once [leasing agents] are able to show apartments… the inventory will diminish and there will be more competition.”
Realpage and CoStar both project that rent will continue to decline through the rest of the year. Realpage projects that the decline might lead to a 5.6% decrease in the first quarter of 2021 and CoStar projects that the current trend could even lead to a 12% decrease in rent prices.
We know that finding your next rental property can be stressful, especially in a crisis like this. At Del Rey Urban, we specialize in real estate across LA county and own properties throughout the nation. Our agents are experienced in sourcing rental properties during the pandemic and will take the best measure to help you find the rental property of your dreams while limiting in-person contact and negotiating the best deal on your behalf.