CNN Business recently posted a report covering the possibilities of how a COVID-19 vaccine could directly affect the real estate market. According to real estate and economy experts, the arrival of a vaccine could really begin to turn the market around.
Currently, the pandemic and historically low mortgage rates and home inventory have driven up home prices to where we are now seeing record high price tags throughout the nation. However, studies show that the most costly areas (urban cities, like New York and San Fransisco) are among the few locales that are experiencing the opposite, as people move away to the suburbs, driving rent and home price tags lower.
According to the experts, the promise of a vaccine could turn the tide for these urban areas, bringing real estate demand back to the cities. Jonathan Miller, president of Miller Samuel and a real estate appraiser and consultant in New York City, commented on this possibility and how it would come about: "It's not going to be a light switch, but the news is starting to get people to be hopeful and think about returning to the city. Because right now, without a vaccine, it is status quo.”
Even though an approved and ready-to-go vaccine is still a ways away, people are beginning to cautiously become more hopeful and optimistic about real estate market recovery, especially in the hard-hit cities. Also according to Miller, after the arrival and usage of the vaccine becomes more and more widespread—and life begins to be and feel more normal—that city real estate markets will likewise be on the mend (more and more).
"Once the vaccine is out and the population begins seeing schools reliably open and the big companies bringing people back in, that's where it snowballs," Miller said. "Then people can make plans around it.”