Hello Everybody, Sunny with Synergy Real Estate & Property Management here with you again. Today we’re going over Coronavirus and how it’s changed a lot of people’s living situations. A study was recently done to see how many people had their living situations changed because of Coronavirus. It found that a little over 50% of people said Coronavirus impacted their living situations in some way.
How is Coronavirus affecting living situations?
Think about those kids who went off to college or maybe even just finished college. They may have had apartments or houses in other cities and are trying to make things work out. Now, in the middle of Coronavirus, we have all these lockdowns so it may not be financially feasible for those people to stay in that location. Also take into account the people who may have moved back home because they wanted to help out their families financially. What we’re looking at is, of the 50% of people who had their living situations changed, nearly 41% of those people were in their early to mid 20’s.
Basically, what that’s telling us is a lot of the people that moved out for college are now moving back to the places they had previously lived. In the majority of these cases you see a lot of these people are moving back with their parents and up to 90% of those people are still living with their parents.
Scenario of living situations
Now you have, for instance, a scenario where the child had left to go to college and the parent may be paying for an apartment outside of the dorms or college area. However, because of Covid-19 the child is having to move home so that way they can save expenses or maybe help out the parents as well by getting a job. What you’re seeing now, is those parents are having to not only pay for the place that they’re living in but the place that they had their kid in.
Essentially, there is now a selection of people who are paying for multiple living situations but may not be financially capable to do so. Because of Coronavirus, a lot of people have been let go, put on furlough, or had to take time off.
Coronavirus affects the pay system
The influence of Coronavirus on how people are getting paid can really affect how the rents and the mortgages will get paid moving forward. This is just something to look at where coronavirus is impacting our economy.
Eventually, the longer that we wait, the more people who become permanently unemployed, get laid off, aren’t having stable, secure jobs, or are losing hours at work, the more these people are then going to stop paying those rents or mortgages. Obviously that’s going to cause a problem because we can’t just keep pushing the can down the road. At some point, we’re going to have to pay the piper for this, and it’s going to be interesting to see how we come out of this and move forward from here.
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