Location, Location, Location…How the Pandemic is changing the rental market
Before the Pandemic the term Location, Location, Location in real estate was used to describe the best area. This was similar in the rental market, the location and proximity to the city centre, transit, schools, and or other amenities were important factors. Within the greater Vancouver area, being closer to downtown generally increased the price of rent mostly due to employment requirements. As you moved further away from the city centre the prices reduced, there were always areas or neighbourhoods not in the heart of the City that were attractive for different reasons. Kitsilano, South Granville and Kerrisdale are a few areas in Vancouver that were always attractive. Moving to the suburbs of Burnaby, Coquitlam or Langley generally decreased the rental rate significantly.
Along came the Pandemic and it is redefining the meaning of Location, Location, Location. Many larger urban areas don’t have large housing spaces due to the cost of construction. Many condo buildings in downtown Vancouver consist mainly of one bedroom units with fewer two or three bedrooms. When the pandemic hit and people were asked to work from home they realised they didn’t have a functional space to live and work in the same location. This created a number of people residing in one bedroom units to seek out larger spaces of two bedrooms or larger. At the start of the pandemic in the downtown area we found many people who were residing in a one bedroom looking at two bedroom units. We also experienced people who lived in the urban area looking to move to the suburbs for larger space at a comparable price.
What we have noticed in the past year of the pandemic is that comparable prices need to reflect a wider geographic area due to the lack of requirement for a tenant to be close to a certain area for employment needs. Prior to the pandemic an individual may have lived downtown Vancouver for employment reasons, now is moving to Coquitlam, Richmond or Langley, and can afford or is willing to pay the Vancouver rent. Now when we look at comparables for Coquitlam we need to consider all the local areas due to tenant work flexibility. Being near the transit may not be as important anymore as they are not commuting regularly. They are now making choices based on what is the best unit for their needs and what area is the best location for their own lifestyle.
If employers allow work from home to continue permanently, then Location, Location location, isn’t going to have the same meaning it had prior to the pandemic. The pandemic, and today’s technology which allows people to work remotely has changed forever our idea of what housing looks like.
If you need assistance managing your rental property, Cartref Properties can assist you, call today to discuss your needs. You can find more information about us at: www.cartrefproperties.com
