Three Leasing Trends To Look For
June 1, 2020
Founder and CEO, Tru Realty
In the wake of the COVID-19 pandemic, the experts are on-edge trying to figure out what the housing industry will look like when the dust settles. Government officials had to make difficult decisions to keep everyone safe, and although it can feel like these are dark times with no end in sight, the country has banded together virtually to keep day-to-day routines and practices moving as much as possible. The real estate industry is a good example of this: nearly all facets of the business, including education, have identified and executed opportunities to minimize social interaction and continue to provide support to those who need it.
Because none of us have ever seen an event like this in our lifetimes, we must rely on history and look to current indicators in the real estate industry that will help give us an idea of what to expect in the months ahead.
It’s not surprising to see that the number of escrows has decreased and we’re seeing many of them cancel. In general, there also seems to be a lot of less active Buyers and Sellers in the marketplace. Again, nothing shocking there when you take into consideration the world we’re now living in. However, it’s important to note that although there aren’t as many transactions, the people who are looking to buy or sell are extremely motivated and they’re making decisions quickly. Take some comfort in the fact that there is still business to be had in our industry. People are understandably scared, but this will pass and transactions will go up eventually.
For those who are in the leasing and property management industry, you know that rentals account for a great deal of the local marketplace in the Phoenix metropolitan area.
With regards to leasing trends, here are three you should be on the lookout for:
- Short-term Leasing: One of the biggest precautions keeping everyone safe is the restriction on This means people are not traveling for business, pleasure, or even family emergencies. You can count on a decrease in the demand for short-term leasing.
- Long-term Leasing: With the demand for short-term rentals decreasing, we’ll likely see an increase in the need for long-term
- New Inventory: It seems very probable that inventory for rentals will increase (at least slightly) This notion comes from the fact that people who own Airbnb and VRBO (Vacation Rental By Owner) properties not only haven’t been able to attract new visitors to rent their spaces, they’ve also very likely lost money on renters who were previously scheduled to visit. These property managers are going to need to find other ways to bring in some income over the hot summer months.
As we all wait with bated breath to see what the future will hold, I encourage you to stay positive. Continue the work you’re doing from home and keep looking for those virtual options to keep your business moving. We live in an age where there’s a digital alternative for almost everything. And of course, look to the Arizona Journal of Real Estate and Business to ensure you’re staying in the know on current trends and updates from ADRE.