When tenants need a place and the market is hot. Remember yeah, when Covid-19 becomes endemic, the market will still return to norm. Graduates will still be working in bigger cities. They will be moving in from smaller towns. Maybe now would not not be the best time to move into a new job in the Klang Valley since the number of cases may be quite scary to many.
When the economy starts growing and people start moving into bigger cities to take up jobs, then the demand for rooms and homes increase. People from outside the state, definitely need a place to stay. Thus, some may opt for a room, like what I did when I first started to work in Penang in 1998.
Some may prefer more privacy and thus they may rent one whole house. This was what I did in year 2000 after my wife moved to Penang too. This is what propelling the property market. The ever increasing demand for rooms and homes.
It’s happening in American and it seems that many of these tenants are desperate and thus the home owners are taking advantage of this demand too.
Article in nst.com.my The federal eviction moratorium ended last week. Some landlords may throw tenants out. Demand is so strong it won’t be hard to find a new tenant who’s willing to pay a higher rent.
Jay Parsons, deputy chief economist for RealPage said, “We’re seeing record low vacancy. Wages are up, people have the money. And people are saying take my money, I want to move in.”
The rental market is getting flooded with Americans searching for apartments. The economy is revving up, and young people ready to leave their parents’ homes are competing with others who delayed moves because of Covid-19. At the same time, remote work is enabling families to relocate to more-affordable areas, and vaccines have made seniors comfortable again with downsizing. Please do real the full article here. More information. Article in nst.com.my
I know, it’s not the same in Malaysia
Here, many landlords are asked to reduce rental or else… I said many because it’s definitely not all. Just need to remember that there is no need to pushed the landlords to the edge yeah. Property market is always a cycle and the same situation in the U.S. may still happen here, even if not immediately.
As for the long term, rental will slowly inch up and soon, the landlords will have the upperhand again because the price they bought was many years ago. The rental they get is many years later. So, it’s possible they could hold even when renting lower and then as soon as the market turns, they could do what the landlords in the U.S. did as per the article above. Thanks for listening.
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