Multifamily Demand Rebounds in Most Markets, States Yardi Matrix in New Report

Absorption increased this summer in many secondary metros; high-priced gateway markets like Chicago, Los Angeles and San Francisco have a rougher go

SANTA BARBARA, Calif., Oct. 14, 2020 – Apartment demand is rebounding in the third quarter in many U.S. metros, a good sign for the industry after a weak first half of 2020, states the latest multifamily market report from Yardi® Matrix.

Increased absorption in July and August was led by many secondary metros in the Southeast and West – including Dallas, Denver, Atlanta, Phoenix and Charlotte – resuming the strong demand that those markets experienced over the last decade until March of this year.

But it’s a different story for high-priced “gateway markets” like San Francisco, Chicago, Los Angeles and San Jose, which are seeing more renters moving out than other cities and will likely have longer and more challenging recoveries as a result.

“The study of 17 million apartment units in Yardi Matrix’s database demonstrates that rent growth so far this year has been closely tied to the overall expense of apartments by market. Metros with higher average rents generally saw negative growth while rent growth in less expensive metros was modestly positive or flat. That is consistent with renters being more budget conscious at a time of economic hardship,” states the report.

And there are still cautionary signs that things could move backwards, depending on what happens with the number of virus cases this fall. “Multifamily performance will suffer if unemployment remains high and consumers feel uncertain about their prospects,” notes the report.

Gain all the insight of the national analysis in this new multifamily market report from industry data leader Yardi Matrix.

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 matrix@yardi.com, call (480) 663-1149 or visit yardimatrix.com to learn more.

About Yardi

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.