We’ve been hearing about how the residential real estate market is booming, and now this trend is spreading to the rental market.

Demand for two particular types of rentals is especially high: single-family homes and apartments in smaller cities that have less inventory. Rents for single-family homes are growing at the fastest pace in 15 years, according to data firm CoreLogic. Parts of the country that used to be considered affordable are suddenly experiencing the kind of rent frenzy with bidding wars and surging prices that had previously been exclusive to mega cities like San Francisco and New York City.

This is a logical development given what’s been going on in housing. The economy is rebounding and we’re flooded with liquidity, and now we have young people who have been living at home starting to venture out again. The rise of remote work has people fleeing huge cities like New York and San Francisco to places like Boise.

We know there will be short-term affects when it comes to the real estate market and rental market in response to the Coronavirus pandemic. The question is how long that lasts. Will there still be issues 6 months from now? One year from now?

In places like New York City, the effects are significant. New rentals have plunged 71% in Manhattan. That’s a lot to unwind over the next 6 months to a year.

Will there be fewer office jobs in NYC as companies offer more remote work options? Will fewer people want to move to NYC until the virus is completely eradicated or we have a vaccine?

The psychological effects are real, and sometimes it can take years to get back to normal after a recession or event like an earthquake or hurricane. Effects from a pandemic may be even worse.