One thing is for certain, the way we do things has changed, in some cases permanently. This includes deciding to move and settle in a different location. The rate and method of people relocating in 2021 will be drastically different than in the past.
Unfortunately, economic factors, environmental factors, health, and other issues have impacted every generation, from retirees to college students. Many have halted their plans temporarily and still plan to relocate. Others fear that the current situation will prevent them from making a move indefinitely.
We’ll examine some of the facts and trends for resettling as 2021 gets underway.
Rent Pricing Trends in 2021 and Solutions
Rent prices have been mixed since the 2nd quarter of 2020 with the average cost of multi-room apartments jumping drastically in many major cities. Recent apartment pricing trends show prices falling in many places for single-bedroom apartments.
This has led to a perplexing conundrum for millennials with children as they struggle to find housing accommodations for their growing families. While individuals seem to fair better in the current market in terms of hyper-urban housing, there is currently a housing shortage for families particularly in minority communities.
One trend that has become viable to offset the increasing rental costs is cohabitation. Many families are now subletting extra rooms or renting larger apartments or homes and dividing the subsequent rent into equal shares in order to improve affordability.
Another solution that has become popular since 2020 is for younger renters to move back in with parents or other family members until financial conditions improve. This too is expected to continue for the foreseeable future.
Housing Prices in 2021
The housing market is facing a similar trend to that of apartments and rental properties. The housing market has been on something of an upturn since the latter part of 2020 and shows no signs of slowing down.
The current housing market trends show that housing prices are increasing rapidly, while demand is falling far short. This could pose a problem for retirees looking to sell their existing homes and move to a retirement location or smaller home.
Existing home sales continue to lag behind that of new homes, leaving current homeowners with fewer options when it comes to selling their homes to potential buyers.
The one solution that seems to be coming is that demand is growing at such a rate that more existing homes are coming on the market, meaning that demand will likely shift away from new construction and towards existing homes. This could give families looking to upgrade and retirees some much-needed relief.
At present, it would appear that those in the middle will benefit most from the housing and rental markets while those on the margins, while new renters, poorer families, and seniors may have to wait to relocate or move in with family temporarily in order to make ends meet.
This is likely to continue at least into the middle half of 2021 and possibly into 2022. This may leave those looking to resettle stuck for a while longer.