The COVID-19 pandemic has affected most every aspect of our lives. Many Americans have been teleworking and all of us have been advised to keep physical distance from others due to the incredibly transmissible virus. As a result, many folks have been giving second thought to the kind of lifestyle they want. In a switch, Americans are gravitating away from large, densely populated cities in search of more space.
While the apartment rental market has remained active throughout the pandemic, the industry has noted an uptick in renters deciding not to renew their leases in favor of houses and apartments with lower rent. Rental prices in larger, more expensive cities have decreased as renters have moved to the suburbs, which has driven rental prices up there.
We have all watched the news reports of Americans migrating from larger cities like New York, Chicago, and San Francisco to less populated areas. Some report as many as 30% of Americans have begun to consider following this trend. As the pandemic continues, many corporations are rethinking the steep overhead of office space and are getting used to the reality that telecommuting has terrific advantages. This makes it easier for people to work further from city centers and company headquarters. And many renters and other city dwellers are hunting for space and a home where they can be more socially distant. Herein lies great potential for the astute investor.
Single family homes outside of major cities present strong opportunities for investors looking for return on investment. Demand for single family rental properties across the country, especially in the suburbs, is growing sharply. Renters and buyers alike seek privacy and space like never before making single-family homes an incredibly smart investment now. And the demand for single-family homes appears poised to continue growing as folks who held off on purchases during the last eight months return to the market. Erstwhile urban-loving millennials, in particular, might be a smart focus for investors as they may be most likely to seek a rental single-family dwelling.
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