Covid has affected the economy in ways that no one could have predicted. The way things work has changed, especially in real estate. The market was hit hard in some places but turned out to be more resilient in others. Here’s how Covid has affected both residential and commercial real estate:
Commercial selling has been found to be more versatile than expected. During the beginning of the pandemic, listings went down as most people stayed home, but as things started to open up again, the need for social interaction and being on-site grew. The demand for commercial listings increased as a result, with investors largely not dropping out at all, but particular things buyers and investors were looking for in those places changed. Now they are looking for listings that can accommodate social distancing, air circulation, and other pandemic musts. In addition, listings for specific needs like storage, pharmacies, and other stores have gone up. The buyer’s demands have changed and so has commercial real estate with it.
Residential real estate has been greatly affected by the pandemic in comparison. During 2020, the demand for residential listings plummeted and no one was buying properties. This created a pause in the market as no one wanted to spend anything big as the future was still uncertain. However, 2021 has seen a return to more demand from potential buyers, and unfortunately, supply could not keep up with demand. There is more competition in the market than before so prices have increased significantly. Since 2020 saw prices on houses freeze, 2021 now has increased prices coming back in full swing. This issue along with fewer listings has created a highly competitive market in real estate and one can only hope that supply can increase from here.