{"id":450,"date":"2020-03-25T06:00:00","date_gmt":"2020-03-25T06:00:00","guid":{"rendered":"https:\/\/www.realtrends.com\/blog\/2020\/03\/25\/which-cities-are-vulnerable-to-covid-19-and-what-agents-can-do\/"},"modified":"2025-03-13T02:03:07","modified_gmt":"2025-03-13T02:03:07","slug":"which-cities-are-vulnerable-to-covid-19-and-what-agents-can-do","status":"publish","type":"post","link":"https:\/\/www.realtrends.com\/blog\/2020\/03\/25\/which-cities-are-vulnerable-to-covid-19-and-what-agents-can-do\/","title":{"rendered":"Cities Vulnerable to COVID-19 And What Real Estate Agents Can Do"},"content":{"rendered":"

At this moment, the novel coronavirus COVID-19 is spreading across the U.S. and devastating the economy, but its effects won\u2019t be evenly distributed across the country. A new study by Clever Real Estate<\/a> uses a hybrid metric to assess and rank the vulnerability of 107 American cities, and a lot of their findings might surprise you. For instance, living outside a dense major city doesn\u2019t necessarily mean you\u2019re safer, and the debt levels of your city might have more influence over your economic vulnerability than your personal income does.<\/p>\n

<\/p>\n

How does all this affect the real estate industry? Long term, no one is sure, but we\u2019ve already seen NAR discourage realtors from holding open houses, and iBuyers like Zillow and Redfin have already stopped extending instant offers<\/a>. The pandemic is going to change the way the industry operates for the foreseeable future, but the outlook is still bright; after reviewing the cities most likely to be hit hard by COVID-19, we\u2019ll go over some strategies that agents can use right now to adapt to changing circumstances.<\/p>\n

How Does the Study Measure Vulnerability?<\/h2>\n

The Clever study uses four main metrics to assess how vulnerable a city is to coronavirus, and it weighted those measures differently. Social responsibility, given 1X full weight, looks at residents\u2019 willingness to participate in socially responsible actions to prevent the spread of the virus; it also looks at innovation and overall civic engagement. Economic vulnerability, given 2X full weight, looks at the economic health of a city, and how it could be impacted by the virus. Financial vulnerability, given 3X weight, measures residents\u2019 ability to afford testing, care, and time off work. And finally, health vulnerability, given 4X weight, examines likelihood of rapid spreading, potential death rates, and availability of treatment.<\/p>\n

By combining those four metrics, the study came up with a ranked list of the most vulnerable cities in America. Let\u2019s look at some of the cities that topped the rankings.<\/p>\n

New York City<\/h2>\n

It\u2019s probably no surprise that New York City, currently the main epicenter for the U.S. outbreak, tops this list.<\/p>\n

The main reason NYC is so vulnerable to the coronavirus is its density. It\u2019s the most densely populated city in America, with about 10,900 residents per square kilometer, or almost twice as many as San Francisco, the second place city on this list. And all those people are constantly rubbing shoulders, literally\u2014 61% of New Yorkers commute via public transportation, a number that\u2019s all the more striking when you consider that in many cities, that percentage is 0.1% or lower. It\u2019s no wonder that the city has a viral \u201cattack rate<\/a>\u201d five times higher than any other city in America.<\/p>\n

New Yorkers are relatively well-off, with a high rate of insurance, but that wasn\u2019t enough to offset the density issue. New Yorkers, try not to venture out too often.<\/p>\n

San Francisco<\/h2>\n

The second entry on this list is somewhat surprising, considering it ranks among the very best cities for financial and social vulnerability; San Franciscans are very civic-minded and collaborative, and they have a great rate of insurance and excellent access to care. Unfortunately, San Francisco has the same vulnerability as New York: density.<\/p>\n

With 6,955 residents per square kilometer, and over a third of them (33.45%) relying on public transportation, San Francisco has a lot of people who are often in close proximity to each other.<\/p>\n

Washington, D.C.<\/h2>\n

D.C.\u2019s situation is similar to San Francisco\u2019s, with one major difference. It\u2019s similar in that the city ranks very well for social and financial vulnerability: District residents are cooperative and civic-minded, and there\u2019s a great social safety net in place, so most residents have access to insurance and health care. Where D.C. is weakest is in economic vulnerability, where it ranks first. That\u2019s likely because the District\u2019s economy is very reliant on the federal government; if the government shuts down because of the virus, the District will take a huge hit. Though they\u2019ve tried to diversify the economy in recent years, D.C. is still a one company town.<\/p>\n

Detroit<\/h2>\n

Detroit has one thing going for it; it\u2019s not nearly as densely populated as the other cities on this list (ranking only 25th in health vulnerability), which means that coronavirus spread wouldn\u2019t be nearly as rapid. But it ranks very poorly (2nd) in financial vulnerability; 24% of residents aren\u2019t employed, 16.7% don\u2019t have health insurance, and 43.4% live in poverty. The population would be hit very hard if COVID-19 did spread.<\/p>\n

The city itself is also poorly prepared for the economic consequences of health shutdown, with extremely high levels of debt and a poorly diversified economy.<\/p>\n

How Can Real Estate Agents Adapt to \u201cThe New Normal\u201d?<\/h2>\n

We\u2019re looking at months of industry disruption, if not longer than that. But real estate agents aren\u2019t like white collar employees who can just work from home; they need to sell homes to make money, and there\u2019s no unemployment program that\u2019s going to replace lost commissions.<\/a><\/p>\n

So how can agents operate right now?<\/p>\n

Virtual Showings<\/h3>\n

Even if your area hasn\u2019t been hugely impacted by COVID-19, NAR has advised<\/a> their members against holding open houses right now. But you can still hold virtual open houses and virtual showings. Many realtors are using tools like Google Meetings, Youtube Live, and Facebook Live to hold virtual open houses.<\/p>\n

The idea of a virtual showing isn\u2019t as radical as it seems; luxury and foreign buyers have used them for years, when buying a property sight unseen. And in other countries that have been hit by the virus, the industry has already adapted; in February, buyers and agents in China held 350,000 virtual showings<\/a> a day, up 3500% from the previous month.<\/p>\n

Up Your Digital Marketing<\/h3>\n

Everyone is online now, so you should be too. Delegate a large portion of your marketing funds into reaching people online, through social media, ads, and email. Just keep in mind that a recent report found that email is, by far, the most effective way to reach clients<\/a>, returning $42 for every $1 spent, and yielding the most actionable data.<\/p>\n

Specifically, think about what your offering should be in times where home buyers and sellers are likely strapped for cash. Agents are competing<\/a> against flat fee MLS and other affordable models that on the face of it are attractive to agents.<\/p>\n

Can you offer a buyer rebate<\/a>?<\/p>\n

Either way, you\u2019ll need to convince sellers FSBO is not the way to go in these difficult times, and strong digital marketing will help you send this message to the masses.<\/p>\n

Sanitize<\/h3>\n

If you and your client are determined to move ahead with in-person showings, make sure you sanitize all surfaces before and after the showing. Don\u2019t forget to provide wipes, hand sanitizer, and masks for browsers, and remember to observe basic distancing measures. And if you do close the deal, don\u2019t shake on it!<\/p>\n

Don\u2019t Break Local Quarantine Measures<\/h3>\n

If you do decide to try to hold an open house, make sure you check your local quarantine measures first. If your city has a \u201cshelter-in-place\u201d order active, or has forbidden non-essential functions or gatherings, don\u2019t break the rules just to hold an open house. It\u2019s not only dangerous for public health, but could be very bad for your professional reputation if there\u2019s a public backlash.<\/p>\n

\"LukeLuke Babich is the CSO of Clever Real Estate, the online referral service that connects home buyers and sellers with top-rated agents. Luke is a real estate investor in St. Louis, MO with over 24 units who specializes in multifamily units. His first investment was a house hack with Clever’s cofounder, Ben Mizes. <\/i><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

At this moment, the novel coronavirus COVID-19 is spreading across the U.S. and devastating the economy, but its effects won\u2019t be evenly distributed across the country. 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