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Glad we aren't flight attendants or McJob cashiers.
That's great for you of course, but what about all the flight attendants, baggage handlers, pilots, mechanics, airport workers? And the other businesses I mentioned earlier. Will the economy immediately absorb them in new careers? Doubtful and they have mortgages and rents that are due.
A great point in some ways. Im sure we will see lower rents out of this, but that wont change the reality that 1 in 10 of us is risking eviction. Right now.
Extremely far and few in between. I personally know about, roughly 10 mega rich property owners. They are all investors in property. The typical four story (retail on the ground floor and apt rentals on the 2nd through 4th floors) building will go up on a huge city block, all 10 or so investors will divide up and purchase apartments in the new building. They then will rent out the apts they own at astronomical prices. Bottom line is, all of these investors have a piece of the pie at multiple properties. They will all get together and make a pact not to lower their rents. When 90% of the land lords do such, rents will not go down except for the very far and few in between properties who are not part of that pact of ultra rich investors.
If there is a building of, for example 20 units, all that the property has to fill is around 5 to 8 units for the property owner(s) to break even. So they have a cushion that they can allow some units not to be filled and still make some profit. If the example 20 unit apartment falls below 5 to 8 units being rented, that's when the land lord starts to lose money.
The 10 or so ultra rich investors I personally know, just a few years ago all invested in a brand new building. However, they are all wanting out now because of the coronavirus situation. They have no choice but to lower their asking rent rates because people aren't working and/or moving away from the big city. They aren't making the profits they believed they would be making when they went into this joint venture together. They all want out now at the same time. Breaking even or even anywhere close to that is not anything they are interested in. They don't want to lower their rents either.
A great point in some ways. Im sure we will see lower rents out of this, but that wont change the reality that 1 in 10 of us is risking eviction. Right now.
Yep, supply and demand would work but there is a shortage of housing to begin with, so it will take the market a while to adjust. When the economy recovers, we will be back in the same boat with housing costs we are in now. I don't know if builders just aren't building or if government red tape is slowing builders down, but that should be something addressed by our fearless leaders.
Yep, supply and demand would work but there is a shortage of housing to begin with, so it will take the market a while to adjust. When the economy recovers, we will be back in the same boat with housing costs we are in now. I don't know if builders just aren't building or if government red tape is slowing builders down, but that should be something addressed by our fearless leaders.
Actually I'd point out that the scarcity argument only applies because of the perceived in elasticity of housing location. Something that since now a TON of people are doing WFH may mean thats not as accurate.
What good does it do a landlord to evict someone because of this virus? Then their property is just going to sit empty and they'll get nothing. Wouldn't it be better to lower the rent to what the tenant could afford for now and then extend the lease to make up the difference when things get better ?
What lockdown? No one has been forced to stay home, including those who test positive.
The Federal Government issued guidelines which includes social distancing which impacts most businesses.
Big box and grocers remained open for business.
USPS, UPS and Fed Express are doing well.
Most restaurants switched to carry out/ delivery, patio seating and limited indoor dining. Weather changes in 6 weeks +/- and restaurants will need a plan B.
Commercial airlines are operating at 20% capacity. The Federal Government is paying Commercial airlines to pay their employees for not working.
Depending on location, the hospitality industry is operating at 20-40% capacity.
Tourism has been hard hit. Most countries will not admit US people. And most people have no desire to visit the US, right now.
Las Vegas opened for business. The trade shows and tourism have not returned. Orlando and Chicago are tied for second place for trade shows that have all cancelled.
Most people remain employed.
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