How Covid-19 Has or Hasn't Affected The Housing Market (June 2020 Update)
Channel: Noel Christopher
Date: 2020-12-31

Quick update on the #Singlefamilyrental space and what I have been working on lately.

1⃣  If you don't follow John Burns and his company John Burns Real Estate Consulting, you should. He puts out great #Housing market insight.

2⃣  During the last downturn, rents stayed up or flat, except for a few markets. We don't expect much rent contraction right now. Especially in the traditional SFR home at $1300+ rent.

3⃣  I wrote this in Forbes pre-COVID... People want to live in more affordable areas, now more than ever. Guess what? Investors go where there is a housing need. We are seeing SFR investors follow the migration trends. It is common sense.

4⃣  Now we are seeing investors run from the low yielding, high-risk urban commercial RE. Just this week we have had #1031Exchange buyers look to us to find them SFR. What is more interesting is they will buy at a lower yield than most funds. This is opening a door to deals we didn't have pre-COVID. Add this to the efficiencies that are coming in the SFR space. These investors are happy at a 5% net yield.


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