CHICAGO - Cushman & Wakefield (NYSE: CWK), a leading global real estate services firm, released a new study on the impacts of the COVID-19 pandemic on the global rental housing market, including rental market rebound rankings and investment recommendations.
The report identifies five factors that will determine the speed of recovery in rental housing market demand compared to their pre-pandemic path over the next several years by analyzing global gateway markets across each of these factors and then combining them into a single composite model.
The factors include generational turnover, market dominance vs. competitive markets, risk of homeownership conversion, severity of COVID-19 impact and response and the market’s reliance on international migration for growth.
“The nature of the pandemic negated the traditional advantages of global urban centers and has some questioning whether residential demand will ever bounce back to pre-pandemic levels. For this study, we examined 27 global gateway markets to assess how these factors impacted the multifamily housing market,” said David Bitner, Head of Capital Markets Insights at Cushman & Wakefield. “Then we combined these factors together into a ‘rebound ranking’ score for each city.”
A higher rating indicates that conditions are more favorable for a rebound in rental market fundamentals and investment compared to the pre-pandemic trend over the next three to five years (see table).
European markets were most represented among the top 10, followed by U.S. markets. For Asia Pacific, Tokyo and Singapore both ranked within the top 10 for rebound potential.
Download Cushman & Wakefield’s Global Residential Impact Study for more insights.
