Luxury Rental Market Trends for 2021
It’s the last day of 2020, can you believe it? There is a common argument today about what the rental market will look like in 2021, particularly the luxury rental market.
While some say that people are cutting back from comfortable amenities and leaving the city for less populated areas, other experts are pointing to a new population moving in: affluent customers making real estate decisions based on their health-driven lifestyle. What does this mean in terms of the tempering pandemic?
Experts predict that COVID-19 will continue to shape the luxury real estate market and fuel growth as long as inventory holds out. Demand for exclusive rental properties will continue well into 2021 and continue to drive the seller’s market as inventory remains low on available properties.
People are predicted to continue to work from home even as the vaccine becomes more widely available. This means they will continue to seek out properties with home office spaces and amenities that make their lifestyle more advantageous to at-home living.
But what about the migration of residents moving out of the city and even out of state? Real estate professionals remain optimistic that as COVID starts to go away, people will miss the cultural and social life of the city and will return, including to high-end condominiums in Los Angeles and the surrounding areas.
So … what’s the verdict for 2021? No one can say for sure yet, but it does look like tenants will continue to seek out rental properties that give them and their families a sense of security, health safety, comfortable at-home living facilities, and privacy.
Here’s some recent headlines:
L.A.’s Downtown Luxury Apartments are nearing 5 percent in vacancies
L.A has seen the largest number of newly built luxury units in the past decade, which has been hit particularly hard with rent prices. According to L.A. Magazine rent has dropped to nearly 8 percent since January of this year! We are interested to see if those numbers increase once developers reconfigure previous spaces with air filtration systems and more outdoor & indoor spaces to accommodate those now working from home.
2021 will be a strong year for cities with ample single-family housing on larger lots.
Consumers fleeing from big cities will continue to migrate to communities where their priorities and needs are met equally. They will spend more on real estate that gives them and their families a sense of security, health safety, and privacy.
With people making more health-driven lifestyle choices amid the pandemic, demand for exclusive residential properties will continue well into 2021.
Thea at Metropolis received a $250 million first mortgage.
The newly opened property which was funded by New York-based Apollo Global Management Inc.provided the loans. Thea houses 685 luxury condos and commercial spaces. Being part of the larger Metropolis project, it includes the 350-room Hotel Indigo, two luxury condo towers and restaurants and retail space. Moving at full force to a vision and a faith that the appeal of the West Coast’s major gateway cities is everlasting despite a change in consumer habits and an ongoing pandemic.
City of LA “apartment owners” lose in Federal Court to stop Mayor Eric Garcetti’s eviction moratorium
Senior United States District Judge Dean D. Pregerson ruled that there appeared to be no immediate threats of foreclosure to landlords who had not received payments from their tenants. It was also stated that the City Moratorium appeared to be “imminently reasonable. Also noting that landlords are not deprived of their right to sue for unpaid rent and to seek money damages. A small loophole for landlords stuck in a bind.
Millions of California renters are at risk of eviction as tenant protections soon expire.
With rent payment forgiveness coming to an end come February 2021, many fear a huge surge in homelessness on the rise. With a new “stay at home order” in place many lawmakers are pushing for an extension as millions of California renters struggle to keep their balance.