The LA Rental Market Is HOT
Why is L.A. now appearing to be a Hot Lease Market? Why are so many people with substantial amounts of Cash eager to find Single Family Homes for Lease, and, all over the L.A. area? As everyone has likely heard, L.A. has been a Hot Seller’s Market right now. Many people have been interested in buying but not many people want to sell. Most of this was due to Covid and the lack of security, and not knowing what lies ahead. But something worth talking about is what is starting to happen as COVID lifts and we begin resuming to normalcy.
Firstly, people want homes in general now more than ever. They want the backyard, the Work from Home space, the gym, etc. Families are expanding, people have had Covid babies and have adopted pets left and right. But, with that being said, Buyers are being pushed out. The Sellers Market I referenced has become so competitive, homes are selling for over asking price, making Buyers feel like they can’t stand a chance or that it’s not even worth submitting an Offer. This is driving people to want to rent a Home instead.
My recent Mid Century Lease Listing on Ivarene Ave in the Hollywood Dell exemplifies the general eagerness to Lease a home. I received 13+ Applications from just a couple days of showings, from applicants whose bank accounts most definitely qualify them to buy a home, if they wanted to. Over half of the Ivarene applicants were NY Transplants. Many of these Prospects who are returning to L.A., or starting their new lives in L.A., were originally Buyers who now are pushed out by the prominent competition as discussed before. There may also be a sense of hesitancy for them to commit long term due to uncertainty instilled in us from Covid.
If we have understandably been left with any uncertain feelings from Covid, it’s that who knows WHAT is around the corner. The uncertainty in the Economy and the Future in general is perhaps de-motivating some people to buy a home now, even with the qualifying Financials. But what if my job requires me to go into an office again? What if I want to move closer to my Family again? What if we all shut down again? Another Virus? What if!.
For Homeowners with uncertainty on whether or not to sell their home right now, leasing is a good option as the demand is clearly unprecedented, meanwhile it buys you time to see what the future holds.