I’d wager the rent rate is necessary to cover the mortgage, homeowners policy, other insurance, and repairs. I don’t think landlords have 36% IRR on their investments. Rents at that large of a discount aren’t sustainable.
No, they don’t have that IRR if their investments were made at 2019 market prices. They have more than that IRR even with all those expenses if they bought at 1980 prices.
What’s unsustainable is the property prices of 2019 (and June 2020 because real estate asset prices are sticky). “Investment” is path dependent and is irrelevant to pricing for the market as a whole (it obviously does to a single player)
Most “x weeks free” are limited to luxury buildings and 8 weeks is on the very high end of those offers. And even before COVID you’d see 4 weeks free advertised reasonably often. IMO the rental drop isn’t nearly as drastic as you’re suggesting.
but landlords are also offering 8 weeks free
Which really means an annual lease has dropped 25%
quite steep, you could probably offer something closer to 38% lower.