The global real estate industry has undergone major changes in 2020. The majority of major cities continue to register the lowest ever median sale prices in history. The housing market has been greatly impacted by the Covid 19 pandemic, changing legislation, decreased employment, and other significant issues. Old strategies have been tweaked, and new trends have come into play.
Investors have been known throughout history to make the most out of a crisis. And the current struggling global real estate market may present opportunities they can take advantage of. This article takes a closer look at the top 3 trends in the Bronx real estate sector to help investors see why the Bronx NY borough is worth their time and money.
1. The Covid 19 Pandemic Has Altered Lifestyles
The Bronx Real Estate has felt the impact of the hard-hit New York housing market. Compared to last year, the median sales were down by up to 45%. The decline can be partially attributed to the unprecedented outbreak of the coronavirus pandemic. Real estate agents had envisioned an active and successful fiscal year, but this was not to be.
For the better part of 2020, people have been restricted from free movement and social interaction. Lockdown protocols and social distancing regulations have encouraged long periods of self-isolation. Thus, the abrupt distraction in the real estate sector. Agents are unable to organize open houses to show properties. And virtual interactions between sellers and buyers, in this respect, have proven inadequate.
The outcome? As more people adopt remote work solutions, the growing demand for residential houses far from the Big Apple is seen. Suburbs in the Bronx are all the rage right now. Preference for less crowded neighborhoods has doubled.
2. Change In Legislation
New regulations, such as the rent-stabilization policy, take a toll on landlords, especially residential and commercial properties. These laws are somewhat restricting to the landlord. They can neither evict rent defaulters nor alter the rent once the current tenant moves. As a result, owners of rental properties are now opting to sell at highly subsidized prices. If you wish to invest in this borough, you ought to take advantage of this opportunity.
3. Lower Property Prices
First-time home buyer requests indicate a thriving demand for single and multi-unit family houses grows. In addition, the market is embracing technology, creativity, and resilience to soften the blow. All these factors make the Bronx a lucrative investment plan. Developers can take advantage of the buyer market to purchase land cheaply to construct housing. Lucky for investors, the Bronx housing market is currently a buyer’s real estate market. What this means is that there are more homes on sale than there are buyers.
Developers are predicting a long-term economic future in the investment real estate sector. Although the Bronx saw a decrease in sales, the median asking price for homes has increased. What this reveals is the potential for growth in the Bronx housing market.