It is absolutely incredible how today’s bidding wars for houses has become so out of hand. Twenty, thirty offers? Twenty percent over asking? Where are these people coming from? And no longer just San Francisco and Seattle.
But look at what’s going on in U.S. markets today. People are fleeing the pandemic, moving out of the cities, sometimes just to nearby towns but often further away to communities in secondary, tertiary markets. Builders struggle with exploding lumber costs. And job growth, abruptly halted early last year, has resumed its upward trajectory.
Rental markets are seeing the results of this too. Vacancy is down in many markets, due to migration trends but also because people no longer want to live with several friends or in their family home.
Our apartment communities experienced Covid-related decline in income, just as most others did, but it is extraordinary seeing the demand today. In growing communities, very little is being constructed today. Vacancy is very low, and companies are expanding to try to keep up with demand. Our property managers tell us that their local businesses can’t find workers, limiting hours and services.
This market will be shaking off the blight of the pandemic for some time but it appears, finally, to be heading in a healthy direction.