Throughout the pandemic, consumer habits have changed in various ways. And these changes are seeping into the US rental real estate market.
With many workers commuting virtually, both commercial and residential real estate experienced changes.
In San Francisco, 1-bedroom apartment rental prices were down approximately 19 percent year-over-year. The story was not the same nationwide, with some cities/markets seeing increases in rental prices throughout the past year.
With many employees working from home, being close to the workplace became less critical. Virtual and hybrid work environments have become more acceptable, with some companies announcing permanent work from home policies.
This has changed how many people decide where to live, driving migrations between cities across the country. This raises the question of just how powerful network effects in key regions (e.g. Silicon Valley) really are. Cities such as Miami have become popular destinations among those in the technology or VC space.
Going forward, it will be interesting to see if these moves are short-lived or long-lasting, and the implications it has on the workforce of tomorrow.
The author or his firm may have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.