Introduction:-
The COVID-19 epidemic has changed many parts of daily life, including the dynamics of the property market, and presented hitherto unheard-of challenges to communities around the world. In Pakistan, where a large segment of the populace lives in rental homes, the pandemic has created new problems and made old ones worse.
Due to rising home and rental costs over the last few decades, it has become more difficult for lower- and middle-class individuals to locate good, affordable housing. At the same time, there has been a decrease in government financing for affordable housing, and the public and private sectors have not done much to build new affordable housing.
The COVID-19 pandemic in 2020 intensified this problem by bringing about a string of unfavorable and unparalleled circumstances on a local and international scale that defined the long-term consequences for rental housing and urban neighborhoods.
Since the start of COVID-19, we have contacted tenants, property managers, and owners of rentals on several occasions to better understand the crisis’ ongoing effects on a market segment that is frequently ignored by research. To provide a comprehensive picture of the potentially hazardous financial situation that COVID-19 has put many small rental property owners and their residents.
In, this blog will integrate our primary research data from 2019 to 2021 with the assessments of two research organizations of Census data from 2015 to 2018. . In this blog, we examine the complex effects of COVID-19 on Pakistani rental housing and talk about possible solutions.
Economic Strain and Rental Affordability
Many Pakistanis are experiencing financial instability, lost income, and a large number of job losses as a result of the COVID-19 economic impact. Homeowners are consequently having trouble fulfilling their rental responsibilities, which is causing a rise in rent arrears, evictions, and unstable housing.
The affordability situation has been made worse by the drop in household earnings, especially for low- and middle-class renters who were already having difficulty making ends meet before the pandemic.
Impact on Landlords and Rental Market Dynamics
The pandemic has also affected landlords in Pakistan, who are now dealing with issues like unpaid rent, upkeep expenses, and vacant properties. To cover their expenses for maintenance, property taxes, and mortgage payments, many landlords rely on rental income.
Tenants’ failure to pay rent has damaged relationships between landlords and tenants and prompted discussions regarding rent relief options and lease renegotiation. Additionally, some investors have refrained from entering the rental market or growing their portfolios of rental properties due to the uncertainties surrounding it.
Housing Conditions and Health Concerns
The significance of housing conditions in reducing the spread of infectious diseases has been highlighted by the pandemic. In densely populated metropolitan regions and informal settlements, there is an increased risk of COVID-19 transmission because of inadequate housing infrastructure, overcrowding, and limited access to clean water and sanitation services.
Tenants who reside in subpar housing are more susceptible to the health hazards brought on by inadequate ventilation and crowding. In addition to preventing the development of COVID-19, ensuring access to secure and sanitary housing is essential for advancing general public health and wellbeing.
People are out of work and not going outside.
People are earning less money, as we have previously discussed. Remembering that certain people earn absolutely nothing is crucial. Due to the pandemic, several businesses were forced to close permanently, which severely damaged the local economies. The impact of missed revenue cascading down from here is just astounding.
The pandemic has changed how society and business operate daily. Most individuals avoid going outside unless necessary as a safety and health precaution. As a result, the majority of firms are either already employing these safety measures or are at least heading in that direction. For the majority of companies and customers, if someone can get groceries online, they will.
Mitigation Strategies
To effectively address the effects of COVID-19 on rental housing in Pakistan, a comprehensive and integrated strategy combining community engagement, private sector participation, and government intervention is needed.
- Rent Relief Measures: To assist tenants in financial difficulties and prevent homelessness, temporary rent relief measures such as rent subsidies, rent freezes, or eviction moratoriums may be put into place.
- Enhanced Tenant Rights: Increase the protections afforded to tenants by implementing legislative changes that forbid discriminatory practices, provide dispute resolution procedures, and pass anti-eviction legislation.
- Investment in Affordable Housing To increase low- and middle-income households’ access to safe and cheap rental housing, more money is being invested in affordable housing efforts. These initiatives include the creation of social housing programs and incentives for private developers to construct affordable rental units.
- Improving Housing Standards Improving living conditions and lowering health hazards in rental homes by raising housing standards and encouraging access to necessities like electricity, water, and sanitary facilities.
To effectively solve Pakistan’s housing issues, broad measures are required, since the COVID-19 pandemic has brought to light the connections between housing, health, and economic prosperity. Stakeholders can lessen the effects of the pandemic and create more equitable and sustainable housing systems in the future by giving affordability, safety, and resilience a priority in rental housing policies and interventions.
Laraib Tahira
Content Writer