- Mar 1, 2016
Just recently have read that Chicago has some average 15 people killed over weekends.This exact prediction has been realized and going on for a long time in Chicago, even before the pandemic! The scare tactic they used was crime and violence which they started incessantly calling Chicago "ChiRaq" to push that are city is so scary and dangerous, same as Iraq.
Out of state investors and successful companies want all of our lakefront property for their employees who don't want to drive or commute via public transportation to work... but want to walk and bike instead. They acquire the most desirable properties and locations by manufacturing a reason to push everyone out.
Every one is looking to the right, where the false story is being told, while all the real and truth of what is really going on is happening to the left.
People do read newspapers, statistics like that make impression and people make life decisions based on what they've read.
Is 15 a lot? Is it more than in NY or Washington?
The point is that public is being manipulated on few occasions.
From small things like what's is latest corporate "trend" to being scared out of own city and selling property at slashed prices.
Just as side note: China did it in recent 5 years. Money ended up in stock market and created bubble that promptly burst.Striking things happened with our neighbours. When the Fed announced zero interest rates and QE policy, the borrowed money became essentially free.
I don't know how much Canada has printed but states approach $5trillion of printed money in last 12 months alone.If you think we'll face inflation, then it'll all make sense.
Back to the topic.
Basically what i see in renting market (family RE) is that rents hold still even while there is little to no renters.
That goes against typical economic principle of demand and supply.
Owners probably try to wait out the situation without making any decision.
A gap might occur between owners patience (plus cash flow) and economy recovery.
If recovery will overlap, market will return to "old normal" minus those who decided to move out of big cities.
If not, there will be short term panic sell off until renters will come back to market.
Basically its a question of how much money was saved by owners and how long they can pay non occupied units expenses.
It would also be interesting to know how many people did in fact moved out of big cities.
Having such number might allow to approximate lost revenue for existing commercial real estates.