It’s no surprise that the COVID-19 pandemic has caused a variety of changes in society. Many of these drastic changes have affected how we interact with others, how we conduct business, and how we live much of our daily lives. Many businesses are taking the pandemic’s brunt, especially when the amount of foot traffic is severely hindered from the looming fear of getting infected by the virus. This is just one of the causes that have lead to the global recession last year.
Many economies around the world have been suffering from financial issues that have pandemic has brought. Although many industries and sectors remain strong despite the events that have occurred since last year, much of the general population is still suffering. That said, many governments have been giving stimulus checks as a means of “boosting” the economy long enough for the current pandemic to end and the economy to bounce back.
Of course, the economy is also working closely with other industries to help recover the economy. One of the largest and most lucrative industries in the United States is the real estate industry, which brings billions of dollars every year. This isn’t a surprise when there are millions of homes out there.
Now that stimulus checks are starting to roll out for many in public, people will finally have the financial power to pay for their rent, much of their debt, and necessities for everyday life. But how will this affect the real estate industry? We’ll be taking a good look at what the future might hold and how stimulus checks can help.
Financial Support for the Real Estate Industry
But before anything else, we’ll need to discuss why the real estate industry is affected by these stimulus checks and how it can also affect much of the general public.
By 2016 alone, it’s estimated that there are around $228 trillion in asset value in the industry, including individuals who are currently and indirectly employed in the industry. This will also encompass government, municipal, and federal assets that are present in the sector. Since the real estate industry has trillions of dollars worth of assets, it’s only logical that authorities will redirect a good amount of the COVID-19 financial support into this industry.
Although, much of the responses will vary considerably and will ultimately depend on the government handling the situation. Some types of support can range from indirect support, such as deferrals in rent or revamping rules when it comes to the eviction process. In other cases, governments will give direct financial support to property managers by paying the tenants.
Governments are quite aware that maintaining a good amount of stability is needed during the pandemic. This means that landlords, tenants, residents’ safety, and building values will need to be taken into consideration.
How Will Stimulus Checks Affect the Real Estate Industry?
So, how effective have stimulus plans been in stabilizing the quality of life for most residents? It will really depend on what these parties will consider doing with the funds in the near future. Most experts are hopeful that these stimulus checks will help with post-vaccination economic recovery.
In most cases, stimulus checks will be used in paying off a good percentage of mortgage debt that might have accumulated during the early months of the pandemic. Although the mortgage rates in the past few months are at an all-time low, many individuals are still struggling, especially when they have to spend their stimulus checks on other more “pressing” concerns, such as food, water, and other types of necessities. Some families will also need to pay off other types of debt.
Fortunately, real estate firms are quite aware that people will still need time to get back on their feet during the pandemic. These hassle-free and considerate mortgage refinancing programs can help individuals who need more breathing space and legroom for their financial needs.
Stimulus checks are a significant help for the population, especially among individuals who have recently been struggling financially. Not only will this help individuals pay their monthly mortgage loan or their rent, but this can also help jump-start the real estate industry that has been taking the brunt of the COVID-19 pandemic. How will the stimulus checks affect the economy and much of the real estate market in the coming months? Well, only time will tell.
Still, we are now almost at the tail-end of the pandemic, and many sectors of society are re-opening. This could potentially influence the local economy, which can help those are in financial need. As of the moment, these stimulus checks are a great way of providing a momentary financial boost to the average worker.