It's fair to say the pandemic affected every sector in the US. It hit the real estate market hard, especially when 'stay at home' orders were at their height.
Despite that, the future isn't bleak for the housing industry, especially in Denver. The city even ranked as the 8th 'most moved to' city between April and October 2020.
What are the post-pandemic challenges and opportunities for the housing sector? Read on to learn more.
Housing Sector Challenges
The pandemic is more likely to affect rentals than sales. You'll see why when we get to the opportunities.
Yet the ongoing concern about social contact means property management may be tricky. That's at least until the vaccine rollout is complete.
Here are some landlord tips for dealing with 1:1 contact with Denver tenants.
Wear a face mask and reduce the length of visits to help rental inspections go more smoothly. Likewise, online or digital rent collection will prove safer than in-person collections. This means you can automate your property accounting.
When it comes to tenant screening, you can always do interviews over Zoom. Collect references and follow up on them. This will help to avoid problems when leasing properties to new people.
Try to schedule maintenance visits around your tenants. That way, they're not at home when workers arrive. This cuts down on discomfort around having strangers in an indoor space.
Housing Market Opportunities
Remote working released many workers from needing to find homes near their workplace. If this trend continues, more tenants could look for real estate outside areas like New York.
Denver can capitalize on this trend. It boasts lower rents but the same city amenities tenants want. Apartment rental applications increased by 11 percent in 2020.
The supply of single-family properties for sale doesn't meet the demand. This creates opportunities for landlords. That can drive buyers to look to rentals while they're looking for homes to buy. Expect rental value to go up.
Shift your property marketing into the online space. People have gotten used to buying online during the pandemic. 'Shopping' for homes is no different.
Real Estate Investing Tips for Housing
Demand in the real estate sector is highest for single-family dwellings. It makes sense to invest in these houses, particularly as rentals.
Invest in the suburbs. People are relocating back to these areas for more open space, larger properties, and less contact with others.
That said, the Baby Boomer generation is now looking to downsize. Invest in senior-friendly housing stock to provide them with new homes. That might mean assisted living properties, or creating communities for senior residents.
Follow These Real Estate Tips for Success
The 'supply and demand' issues in the housing sector can seem challenging. It's difficult if you want to buy housing stock to rent out.
Yet these same issues also provide opportunities for landlords and investors. With fewer houses to buy, would-be buyers end up renting instead. You can capitalize on Denver's growing popularity to make sure people rent your properties.
Ready to buy a home or invest in Denver property? Get in touch and we can help you find the ideal property.