How the Current Housing Crisis is Preventing People From Moving
By2020 saw many people staying at home. Unfortunately, the housing market forecast for 2021 may have many people doing the same. Reports show that since the Coronavirus pandemic, many people face economic insecurity, fears about health, and problems regarding employment. These factors have stifled many people’s plans to move. As a result, housing demand has skyrocketed in 2021. Rental prices for multi-person units are up 30% in some areas. Though the prices are expected to level off in some areas through the first half of 2021, by the latter half, price increases are expected to resume. This puts families looking to rent and existing renters, particularly those with lower incomes and minorities, in a particularly desperate situation. Renters aren’t the only ones suffering under the current economic conditions, home buyers and sellers are also facing particular problems. Current sales predictions for homes indicate that it will continue to be a seller's market well into 2021. This is good news for those looking to sell who already have a separate home or who are selling for other reasons. The one problem with this seller's market is that it has so far been heavily focused on only new homes. This has left existing homeowners in a bit of a pinch to try to sell their property. However, demand continues to outpace supply in such a way that it is expected that sales of existing homes will pick up by mid-year. This gives sellers some hope of reaping record profits off their home sales. This has left buyers in something of a conundrum. In many cases, homes are going for well above the asking price, with bidding wars being commonplace. This has left renters that want to buy a home and low to middle-income families unable to make their desired move. As the current crisis is expected to continue into 2022, where housing futures are uncertain, this has left various age groups searching for different options. Many retirees and renters are choosing to stay put until prices level off. Large numbers of certain groups have indefinitely put off a planned move due to the pandemic as well as economic challenges. Others are opting to move back in with relatives or take in roommates to offset rising housing costs. This has led to a new style of multi-family cohabitation, though some fear that this will only further increase housing costs. There is a great deal of uncertainty regarding whether or not the housing market is due for a crash as a result of the current market factors. In such a case, it could cause a reversal in the current housing problem. For now, most folks plan to put off any planned moves until the situation improves. How Home Prices Are Affecting Buyers and Sellers
What Options Are Available?