Due to the spread of the new coronavirus and related measures, rents are falling in the most expensive cities in the world. People do not want to pay large sums for living in previously sought-after centers, where most shops, restaurants and services are now closed. The availability of services was often the main reason why people moved to the center. The situation is similar in Sydney, New York, San Francisco and London, according to Bloomberg.
–
“If you’re not talking about rent reduction, you’re crazy,” said Tim Lawless, an analyst at CoreLogic, a data analytics firm. “Supply is high and demand has fallen sharply,” he adds.
–
The transition to working from home and closed shops and bars changed the priorities of those interested in housing. And so the balance of power between landlords and tenants has changed.
–
Evidence of the current trend is also 26-year-old Christine Chung, who managed to negotiate a nine percent discount on rent for a house in the sought-after Enmore district of Sydney, Australia. “When the contract expires, I will push for another discount,” says Chung. “The market has changed,” explains the woman, who shares a house in a location about ten kilometers from the city center with three other tenants.
–
But the situation in the suburbs is also beginning to change. People with a solid income think that they will never return to full-time offices and become willing to commute to work from a greater distance in exchange for more space and a larger garden. The prices of such properties are therefore rising despite the threat of a global recession.
–
For example, in the Westchester County area, north of New York City, which boasts more than 80 square miles of parks, home purchase prices have risen 16 percent since last year. In contrast, Manhattan is the lowest since 2013 and the offer is three times higher than last year.
–
San Francisco, California, is also experiencing a dramatic drop in rental prices. The city, which acts as a magnet for ambitious young people, has become famous for its skyrocketing rental prices, which have forced some Silicon Valley employees to live in rented campers parked on the street. But now when technology companies are telling employees that they will definitely be working remotely next year and perhaps permanently, rents are falling fast. According to the Realtor website, the rent in a studio apartment in San Francisco was 31 percent lower year-on-year in September, while the nationwide decline was 0.5 percent.
–
In London, rental prices are falling in response to a drop in foreign students and well-paid foreigners leaving the city due to Brexit. In the most expensive neighborhoods, rents fell 8.1 percent year on year in September, according to Knight Frank, the sharpest in more than a decade. Weaker housing demand is in London, the only region in Britain, according to a survey by the Royal Institution of Chartered Surveyors.
–
According to urban planning professor Christine Boyer of Princeton University, falling housing prices could lead to a fairer distribution. But according to her, cities will retain their attraction. “We love cities, we like to associate,” says a woman who also rents herself.
—
