The demand for a home in this pandemic has been a hot topic in the market. With some financial assistance and a push for lifestyle changes, renters and homeowners reviewed their current way of living, and many f them agreed that a change was very much needed. The result of this was an increase in both sales and rent prices.

We need to understand how the “for-rent” market is performing given the unprecedented backdrop of the supply chain. The economic environment has become more challenging and This is thanks to the reduction of traditional barriers to the cross-border movement of products, services, capital, people, and information.

The market as we know it today can be categorized in one phrase and is “NO AVAILABILITY”. The market has the lowest number of vacant units available on record. The renewal rate is the highest in history with a 58.3% as in the first year of the pandemic it was a 57.4% of renewal which leads us to the conclusion that there is no flow with the apartments in rental, which also means that persons and families that are looking for a new place don´t find something that they like.

In many markets across the country today, rents are increasing to the tune of 1% to 3% per month. Those looking for a place to settle are feeling the rush to lock now, fearing that rents will only keep going higher. One of the reasons why these numbers are getting higher and higher is because of the job losses, if job numbers go negative, you can see multifamily development slow as some developers pull back, jobs are the key to keeping track because they interfere with the demand.

For the discussion of renting vs own mortgage rates play a huge role in the Frost year of the pandemic when interest rates were sub-3%, and the time it took for it to pay off to own versus rent dropped to just three to four years. This got to six years when mortgage rates touched 4%, and, in today’s market, it is better to rent if you are going to stay somewhere for less than nine years.

In short, the rental market has benefited from higher mortgage rates because rents haven’t gone up as fast as mortgage monthly payments have increased.  On the for-sale side, we can see signs that show risings in the  mortgage rates and this is having an impact on the demand