Rebound in Sight for Urban Rental Market, Experts Say
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By Jordan Grice he red-hot housing market has been the shining light in the nation’s post-pandemic recovery. But, real estate experts say it’s only a matter of time before the urban rental market follows suit.
”From what I’ve read, the apartment market is recovering,” says Gay Cororaton, senior economist and director of Housing & Commercial Research at the National Association of REALTORS®. The rental recovery appears to be a good sign for several urban markets that have weathered pandemicinduced migrations to the suburbs amid remote working conditions and national shutdowns. A recent report from realtor.com® found that rent prices in the 50 largest metro areas in the nation ticked up to 2.7% year-over-year in April—the fastest growth since March 2020— showing signs of a possible bounceback for cities as the pandemic wanes. 54 July 2021 RISMedia’s REAL ESTATE
As national vaccinations progress and a return to in-office work sits on the horizon, urban markets may be in for a boom in demand from renters. While markets are already showing promising signs, Cororaton anticipates a complete rebound by the second half of 2022. Tech Hubs Recovering Cities that tech companies have called home still have a ways to go before they return to their pre-COVID normalcy, but it looks like they are on the right track. Rents in tech hubs dropped last year because of remote-work policies, but agents say that companies like Facebook announcing a return to
offices could change that. “People are going to be heading back into their offices, so I’m seeing roommates coming back,” says San Francisco-based agent Dawn Cusulos at Corcoran Global Living in California. In April, the median rent in San Francisco was $2,656, down 10.9% from the same period in 2020, based on reports from realtor.com®. According to Cusulos, that appears to be driving leasing activity. She says that she has closed nine leases in a single week, which is more than she’d traditionally expect in a month. “There is a sense of urgency because they still want to get a deal because prices have come down,” Cusulos says. “Everybody is trying to get something for a good price before things go back up.” Austin was among the top rental markets that saw rents rebound, according to reports. Rents climbed out of a decline in April, with median rent coming in at $1,370 in April—up 1.7%. Job recovery and a coveted housing market could bode well for leasing activity, according to agent Jordan
