The State of Temporary Housing in 2021

No one could have predicted the rental market impact in 2020. The market faced many unprecedented issues as the impact of COVID-19 led many people to move, including a large percentage that bought their first homes and others who moved in with friends and family to cut costs.  

In 2020, rental prices began to drop in major cities, including New York and San Francisco, as employees quickly began to work remotely. The pandemic also put moving tech hubs like Austin, Raleigh, and San Francisco on hold as employers encouraged workers to work from home through 2021.  

The economic status quo triggered by the pandemic has begun to return to normal in the first quarter of 2021, but with some noted differences, and a long way to go yet until we truly see a new normal emerge. Renter behavior has seen a noted shift as people grow accustomed to conducting virtual real estate tours, along with finalizing leases and other transactions at home to help prevent the spread of the Novel Coronavirus. Keep reading, as we’ve found a few other rental market trends that will play an important role throughout the year.   

Rental Prices Will Remain Flat in the First Half of 2021 

Rental prices for apartments and temporary living will likely remain stable within the first 6 months of 2021. This is good news for renters who have lost jobs temporarily or had their salaries affected due to government-mandated shutdowns, says Brad Dillman, chief economist at Cortland, an Atlanta-based multifamily investment and management firm. 

Dillman notes, “Overall, multifamily markets have remained tight from an occupancy perspective, even as rent growth has been weak to negative as operators focus on renewals…As a result of this resiliency, we expect rent pressures to rebound in the second half next year. This rebound appears sustainable given the relative strength of the employment recovery, even as it, in turn, is likely to slow.” 

Come June, large cities like New York, San Francisco, Austin, and Raleigh should expect to see rental prices for apartments and temporary housing rise back to what they were prior to COVID-19.  

If you or the company you work for are looking to place employees in temporary stay situations, the current stability in the rental market could play to your advantage. Talk to one of our specialists to learn how.    

Apartments Will Continue Hosting Virtual Tours and Events 

Although the COVID-19 vaccinations have started to become available to eligible recipients, it’ll be several months before a wider distribution of the vaccines is sent out. Potential renters may be reluctant to visit an apartment in person and opt to look at floor plans and tours through online platforms. Also, since many financial transactions are online, renters can expect to sign up or renew an apartment or temporary housing online, which has become a new standard in the rental market.  

Apartments will likely continue virtual events such as at-home fitness classes, trivia nights, and cooking classes, says Jason Deppen, chief operating officer of TFLiving. Since 2020, renters have shown interest in these offerings and engagements as more virtual events were added, like virtual wine tastings and virtual concerts. 

Jason Deppen, chief operating officer of TFLiving, notes, “We’ve converted over 70 percent of our clients to virtual services since April, with a portion of our clients also making a hybrid approach of safe, socially distanced in-person fitness classes, as well. Our virtual event attendance continues to climb about 10 percent month over month. Virtual events are becoming a ‘new normal’ as a safe way to connect.”  

At The Hennessey Group, we champion the fully virtual rental experience, offering all our services remotely. From apartment locating, to no-contact move-in, to additional services like grocery delivery and cleaning services, all you and your team should be concerned with is the job at hand.   

Job Seekers Relocating 

The state of temporary housing has job seekers moving across the country for new positions in a variety of industries. This is mainly impacted by remote work, which has now become a common option for many companies. In fact, the number of employees requesting the choice to work remotely has increased during the past decade, and many companies are still encouraging or mandating their employees to continue working remotely through 2021.  

This increased work flexibility will remain for the foreseeable future as many companies have made the transition of their workforce to work remotely, says Dillman, “We don’t anticipate job seekers placing as much emphasis on location as it relates to their commute as in years past,” he said.   

What to Expect Within the Year  

Temporary housing and rental market trends will likely continue to be impacted by the Novel Coronavirus and the resulting high unemployment rate and job uncertainty for an extended period. As the economy seeks to rebound in 2021, recovery has proven to be slow in the beginning, due to continued uncertainty surrounding jobs and finances. However, a new normal is coming, built upon the learned behaviors of the past year, the shift to remote work, and the resulting flexibility in where and how people choose to live. Temporary housing groups such as The Hennessey Group will continue to grow in popularity, not only for businesses looking to place employees for extended periods of time, but as an option for those saddled with the uncertainty of changing markets and evolving job situations. If you’re faced with such uncertainty, a temporary stay situation may help relieve some of that stress as you build toward your new normal. Give us a call and we’ll see how we can help!