How do students and interns affect the real estate market?
When you think about real estate students and interns are probably not top of mind. If you’re a DC landlord or thinking about a real estate investment they should be. Since Covid-19 shut down our city in mid-March, I’ve seen drastic differences in the rental market from what I saw last spring and summer. Last year, properties would become available for rent and have applications from potential tenants within hours. It was hectic and a hard time to be a tenant (a few of my past clients can verify—we spent hours racing around the city and putting applications in on properties before we actually saw them!).
This year is different. Universities are planning to have a limited number of in-person classes. Internships as we knew them are no longer happening. This means the housing demands in DC for rental properties have shifted drastically.
I listed two properties in downtown DC that would be prime for students this spring. One in mid-April and one in early June. Under normal circumstances, I would have expected them to have applications within a week or two. This year, one just leased after a few months being listed for rent and the other is still available (and there are 9 other similar units still available in the building). At the same time, I’ve had rental properties listed in Rockville and Alexandria that rented within a week.
So what does this tell me? Anecdotally, after talking with a lot of potential tenants for my DC rental listings, most of whom were students, they are trying to hedge their bets given all of the uncertainty around the ability to be on campus for the next academic year. Many are choosing the least expensive option and others are looking for short-term leases.
Landlords this is the time to price your property well in the hopes of attracting a tenant. Do the math and consider the cost of having a unit empty for a few months vs. having it rent quickly at a lower price.
Tenants you have an opportunity with your negotiating power. Use it wisely.
Long-term, I can’t say what will happen but likely once it’s safe for students to be on campus and internships to take place in offices, things will go back to the way they were.
