This year 2020 is very turbulent. By all means, it has turned from a typical entry into the new millennium to something that can’t be recognized as modern living.
When it comes to the rental market, we can say that just like all other industries, this one is also experiencing changes. These changes are obvious, but what is going to happen by the end of the year is something else.
More experts share their opinion on the subject. For example, BREIA’s take on rentals says that prices will drop, while others claim everything’s going to stabilize fast. In this article, let’s try to make an in-depth analysis of the most important issues that you need to know to form an opinion. Follow up to find out more about this!
What are the facts?
This summer turned out quite different than some experts predicted when the Covid-19 is in question. Everyone thought that the summer will kill the virus, but it turned out that it is stronger than ever. In the States, millions of people are infected and thousands died because of it.
With this in mind, it’s clear that the virus is not going to go away this year unless a vaccine is developed. However, a vaccine is not going to happen soon. That means we’re stuck with the “new normality” at least until 2021.
If the virus is not weakening, it means that the industry is going to be suffering just as it is now. These facts tell you that what we have now will certainly exist in the next few months. See more on this here.
What is the situation now?
The prices on the rental market dropped significantly in the past few months as a direct result of the Covid-19. The virus shut everything down, sent people in lockdown, and made all industries struggle.
This situation made people who rent stay out of business because people are simply staying home and not moving around. They also tend to keep their money for rainy days making the whole situation unbearable for the industry.
With the people saving most of their money, the market had to lower the prices with the hope that this is going to make people decide to rent the properties they have.
What is going to happen in the future?
There’s no positive news in sight. Since the situation isn’t going to become better in the near future, no one can predict a positive change. The prices will continue to drop so if you’re about to work in this business or you’re already involved in it, you must be aware that your profits aren’t going to be as high as expected. Especially not as high as the last couple of years.
Another important issue that affects the situation is the American presidential elections. This event is going to happen in November so, until the elections pass, lots of industries are going to experience market fluctuations. This is completely normal and happens every time when something like this is in sight.
This year, the elections are followed by serious demonstrations on the streets in many American cities which also make the market unsecured. All of these things are important as they affect the industry in general. The rental market is also affected and the whole situation will be over only when these things pass. See more about this here: https://www.prnewswire.com/news-releases/impact-of-covid-19-on-the-global-manufacturing-industry-2020-301042150.html.
When can we expect positive changes?
Until a vaccine is developed, the chances for something like this to happen are low. By 2021, the chances are almost non-existing. During this year and beyond, the chances are higher.
What is best for everyone is to adapt to new ways. Retrain and learn new skills, jump into new fields of business and adjust to the new ways of functioning. Since we can’t expect different normality soon enough, we will have to learn to live with it.
The market does not have a bright future until the Covid-19 crisis is overcome. Everyone who’s a little more into the situation knows that the problem is severe and the solution is not simple. If this is solved, the market will soon go back to its glory days.