As unemployment numbers skyrocket, slowdown in rents and payments lapses are possible, according to latest national multifamily report
SANTA BARBARA, Calif., April 2, 2020 – Taken at face value, the rental data reported by Yardi Matrix for March 2020 looks solid, with rent growth averaging 2.9 percent year over year and up $6 from the month before.
But those healthy numbers don’t reflect the ongoing national crisis due to the COVID-19 pandemic. With the U.S. now leading the world in active cases of the virus, non-essential business shutdowns across the country, and accelerating unemployment numbers, drastic changes are likely in store for the months to come.
“As unemployment claims eclipse records and government stimulus reaches unseen heights, the question arises: Who will be able to pay rent in the coming months?” wonders the latest National Multifamily Report from Yardi Matrix.
Some major metros with jobs concentrated in hospitality, trade, retail and energy may already be showing signs of rent slowdown, states the report. Mandated restrictions on eviction and required rent flexibility for some tenants will also have an impact.
Yardi experts hosted a webinar this week focused on the anticipated impacts of COVID-19 on the multifamily housing market. Demand for apartments has already dropped by double digits, and lease-ups are likely be intensely impacted by the crisis.
“We are seeing the rapid adoption of technology tools to run (multifamily) operations from a distance,” said Jeff Adler, vice president of Yardi Matrix. You can view the full webinar recording and find presentation materials online.
For March, Phoenix and Seattle led all major markets in rent growth, while Orlando and Houston were among the metros already exhibiting slowdown signs. Dive deeper into the full National Multifamily Report for March.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.
Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.