America’s Most Volatile Housing Markets
The housing market has a huge impact on the economic health of different local areas. Homes typically represent a substantial amount of homeowner’s net worth, and when the fluctuation of the real estate market lowers their value, it can have a substantial impact on their financial state. This obviously evokes concern for those choosing whether to rent or buy homes in different areas. However, it’s not just homeowners who are affected. Those fluctuations and changes in the market affect both temporary housing needs and insurance for the area. It’s critical that those who work in insurance for housing or temporary housing understand exactly what’s going on in their relevant markets so they can adjust their approach accordingly.
National Housing Market Trends in 2020
According to Forbes, there are a few predictions for the real estate market in 2020 that affect both the traditional and the rental housing markets. Rising rents are continuing to encourage Millennials to purchase homes rather than continue to rent without building up their personal assets. This could lead to higher demand for homes for purchase, but it also means that home prices are continuing to inch means that investing in rentals could be a good investment as well. The rise in cost for both homes and rent means the traditional real estate market and the rental housing market are both experiencing an economic upturn, and the demand for both rentals and homes will continue to rise.
As of the latest available U.S. Census data, this is the number of vacant vs.
Gentrification Affects Supply and Demand
Metro-area housing markets are continuing to become more volatile as gentrification continues to occur. More people are searching for housing options that offer close proximity to a city, where the physical space required for construction is not as readily available. Particularly around San Francisco and Seattle, where the cost of living within the city limits is exorbitant, surrounding areas with formerly affordable housing costs are growing into high demand areas. There is a national housing shortage around the highly coveted city areas, and it’s leading to major issues with gentrification. Those communities that used to be available to lower-income households are suddenly being scooped up by high-income families. This is causing major displacement of communities that have been established for decades, and those who can’t afford the rising cost of living are forced to find alternative arrangements.
Demand is rising fast, and it’s not going to take long for measures to be necessary to prevent the uncontrollable rise in rent. Rent control, tenant protection policies, and new construction are likely on the horizon for housing markets throughout the country, especially those located around where we are seeing the highest demand. However, at this point, there is no legislation that is expected to have a drastic impact on housing markets in the US.
Natural Disasters and their Effect on the Housing Market
Natural disasters have a major effect on the housing market. When a natural disaster such as a fire, a hurricane, a tornado, or flooding hits a community, homes are destroyed. Those residents are displaced from their homes and the demand for the remaining in the area skyrockets. The housing markets in , typically within 8-10 miles of the natural disaster tend to experience a jump in demand and price as well.
This has to do with the need for temporary housing while people’s homes are being rebuilt and the desire people have to maintain proximity to their jobs, family, community, and the home that is being reconstructed. Typically, after such a catastrophic and emotional event, people are not looking for the further upheaval that might be associated with moving to a completely new area, finding a new job, or leaving behind friends and family. It’s natural that people prefer to stay in their homes and rebuild their lives.
As climate change has produced unprecedented storms and disasters, renters and homeowners have had to take different approaches when they are forced out of their homes. This has led to 2 different demands after a natural disaster, mostly due to insurance differences. Insurance coverage varies for homeowners vs. renters. Homeowners insurance covers repairs and rebuilding costs, but renters insurance is a whole different story and only covers personal property and liability. Renters are much more likely to simply move to a new home rather than wait for repairs, while homeowners are more likely to deal with contractors and rebuilding. This means that homeowners will be looking for temporary housing in the area, while renters will be more likely to search for available rentals nearby. And this is where Temporary Accommodations comes in.
Temporary Accommodations’ internal company database contains thousands of pre-vetted short-term rental properties. Temporary Accommodations monitors high-demand housing markets and preemptively works to increase the number of available rentals in high-demand markets or markets in catastrophe-prone areas. This way we can ensure that those displaced by natural disasters are able to find a place to rebuild their lives quickly and easily, with as little stress as possible.
Nothing about being displaced from your home is easy. The stress and the difficulty of dealing with the emotional loss make everything about being displaced a difficult process. However, that doesn’t mean that while your home is being rebuilt you have to live in discomfort. At Temporary Accommodations, we make it our business to find the best possible solution to an immensely uncomfortable situation by providing displaced homeowners with as many temporary housing options as possible. We know how difficult it can be to rebuild after an unexpected disaster, but we are here to support our clients every way we can.