Statistics are rising on the number of families renting, rather than owning, their homes in the US. There are a number of reasons for this increase, many of which are connected in one way or another to issues arising from the pandemic.
Impact of the Pandemic on the Housing Market
The pandemic has impacted many families in regard to housing preferences and housing options. Difficulty making mortgage payments, the need for additional space for working and schooling from home, and the desire for private outdoor space all presented unique challenges for homeowners and those who desired to become homeowners.
As more and more employers were forced to lay off employees or even close shop, many families found it difficult to continue making mortgage payments. Even with programs implemented specifically to assist with housing, arrangements would still have to be made to make up the missing or reduced payments at some point.
Workers who were employed in fields where it was possible to continue working from home began to carve out space for work in homes that had seemed much larger until then. With parents often working from home and children switching to online schooling for extended periods, a home that once felt roomy began to feel much smaller. In that situation, many families who were in a position to do so began looking for larger homes with more space to meet the needs of all family members. Homes with plenty of room outdoors really became popular since so many social activities had been halted, or extremely limited.
Another impact linked to the pandemic and related protocols that many homeowners are experiencing even now is a significant delay in the availability of supplies for home improvement, large and small renovations projects, and especially the construction of new homes. This is the situation the Milner family found themselves in just recently.
The Milner Family’s Situation
Trevor and Maggie Milner are parents to five children, although only the two youngest are still living at home. When Trevor accepted a new job in a new state, he and Maggie started looking for a home in the new location. With increasing prices in the housing market, they were beginning to worry about finding the right home for their family in one of the three areas they had selected.
While in Lorton, VA visiting several homes they had found online, the Milners happened upon a fairly new development that still had a few lots available. When they compared the cost of purchasing any of the homes they had visited or building a new home in the development they found, they were surprised to find that they would actually come out ahead to just build from the ground up. Being a seller’s market, prices for existing homes were much higher than in previous years. When they factored in any kind of maintenance or repair issues they might discover or any kind of updating or renovating to better meet the needs of their family, it pretty much priced them out of that option. Building a new home meant they could select the features and options that best fit their family.
With their choice made, they prepared for the move. Trevor’s new employer was covering the cost of relocation. He even covered storage arrangements for the Milner’s belongings until the new house was built and included six months of rental fees, which is the timeline the Milners were given for the new house to be ready for them to move in.
Meeting the Milners
Having their permanent home situation resolved, the Milners then began searching for a rental home as close as possible to the new home location so they could become more familiar with the area. They needed a home with a yard in a good school district, for the children and was convenient to various transportation options. While searching online, they found our website and called for a consultation.
They had seen two potential homes on our website that they wanted to check out in person and wanted to be sure we could agree on the length of the rental since they would only need it for a maximum of 6 months. They also had questions about whether they could shorten that length if the new home was ready sooner than expected.
We were able to work with the Milners to construct a contract that would meet their needs, and they returned home to pack for the move. Three weeks later, our realtor met them at the rental home to welcome them to the area.
Then It Got Interesting!
Four months into the term of the rental the Milners asked to meet with us again. They explained that their builder had hit a snag. Many suppliers were experiencing supply chain delays due to the pandemic and related protocols. The Milners were now included among the homeowners affected by that issue. They were now looking at a delay of anywhere from two to three months before many of the remaining supplies could be delivered to complete the construction of their new home. This delay would push the previously agreed upon terms for the rental house.
The Milners explained that his employer had agreed to extend rental payments, and asked about extending the rental agreement. We worked out the details, and the Milners stayed in the rental until their newly constructed home was ready.
Why Akin Developers
Our mission at Akin Developers is to rejuvenate neighborhoods and to help increase the standard of living by improving the overall quality of housing for the residents. We buy houses from individuals in just about any situation including foreclosure, behind on mortgage payments, or just need cash fast.
Some of the homes we purchase we then renovate and sell. Others, like the ones the Milners rented, we renovate and then keep as ready-to-rent homes.
For those individuals and families who want or need the benefits of a rental home, a ready-to-rent program like the one at Akin Developers may be the perfect solution. If you are considering this option, or just want to hear more about our ready-to-rent program, contact us for a free consultation.