Single-family homes in high demand due to COVID-19. Following the Great Recession, the single-family rental (SFR) market experienced solid growth. In fact, the SFR market expanded by more than 3.8 million households between 2006 and 2016. Now, with COVID-19 a part of everyday life, this trend has continued as Americans rethink the kinds of lifestyles they want. With social distancing and stay-at-home orders in place, densely populated areas are losing their appeal to many, creating an uptick in interest for single-family homes.Why renters prefer single-family homes
Some key takeaways from Q2 in the Seattle market: Class A rents in the Downtown Seattle and the Eastside submarkets continued their climbs quarter-over-quarter; absorption downtown and across the region stayed positive; and vacancy climbed across the area, though class A space remained tight or further tightened. Class B and C spaces experienced the brunt of the pandemic.
Recent data has shown how Portland’s economy has been impacted by COVID-19. Employment looks dismal, but construction on single-family homes has thus far remained steady. According to Colliers International, Oregon saw a 429% increase in unemployment claims year-over-year. Construction of single-family rentals are currently providing the most optimistic data for the city’s economic recovery.
While stay-at-home orders were in place, both nationally and locally, the industrial sector seemed to be the preferred asset class. That said, the Idaho office market remains strong with asking rates in both Ada and Canyon counties increasing slightly over the prior quarter. As for home sales, Canyon County prices have been trending steadily upward. New construction was surging at the beginning of the year and appears to have resumed at a strong pace.