The economic impact of the COVID-19 pandemic crisis in 2020 was strong, causing shut-downs and isolation that led to huge job losses, household consolidation and supply chain issues. John Chang, Marcus & Millichap’s senior vice president and national director of research and advisory services indicated that both the national economy as well as commercial real estate continue to be impacted by the pandemic even though much of it is now in the rear view mirror. Inflation rates along with Federal Funds rate increases are still working their way through system.
Household Consolidation has been a major effect due to COVID lockdowns; approximately 1.5 million young adults moved in with family members while there are still 3 million more living with family than what is considered normal these days. Additionally, marriage numbers for 2022 could top 2.7 million (up from less than 1.7 million in 2020). This wave of weddings contributed to a surge in household formation which drove apartment vacancies down while also likely contributing towards rapid escalation on single-family home sales during 2021/2022 periods too .
Supply Chain Issues have been another result caused by huge demand for goods during this time period leading up massive bottlenecks afterwards; although partially repaired they will continue evolving over next decade especially when companies choose move manufacturing/production closer into U S A . Such decisions will have profound influence on industrial properties but also office space demand , retail outlets plus housing due migration towards jobs created here too .
Population Migration trends were already occurring prior however when offices closed down people allowed work remotely empowered them relocate suburbs or different cities altogether impacting urban apartment vacancy /retail rates lower compared suburban counterparts ; same true office vacancies where suburban held better versus urban spaces . Married couples tend migrate suburbs smaller cities if children involved further boosting city – suburb trend influencing housing /retail service providers alike
The ongoing post – pandemic effects include behavior , values plus lifestyles continuing influence various commercial real estate property types locations investor decisions made going forward
