There are lots of forecasts and speculation about the long-term economic effects of the pandemic. But nobody has a crystal ball to see the future. Honestly, I cringe when I hear news pundits and self-proclaimed experts predicting a housing recession. As a licensed agent and active real estate investor, I just don’t see indications of a housing market crash.
We had a low supply and high demand for housing in most cities before the virus closed down the economy. That demand hasn’t disappeared. The housing market is healthy and unencumbered by the loose lending policies and subprime mortgages that led to the housing market crash in 2008.
Paul Moore, co-host of a wealth-building podcast, called “How to Lose Money,” and a frequent content contributor on Bigger Pockets, predicts that single-family rentals will fare very well in a possible downturn. “There are many individuals and families who prefer to rent a home in a particular school district or area, and availability is often limited,” he said.
Real estate is a long-term investment, and carefully selected, appropriately maintained, and properly managed single-family rental properties can provide income, capital appreciation, and tax advantages. Three things every investor looks for.