This week’s roundup takes a look at the potential impacts of COVID-19 on multifamily operations and residents, the apartment financing market, and pricing properties. First, Arbor’s Chatter blog releases its second in-depth piece on the coronavirus outbreak’s impact on how multifamily owners and managers run their buildings and communicate with residents. Next, National Association of Realtors offers an analysis of the capital available for multifamily financing in these challenging times, noting that demand for multifamily remains strong. HousingWire lists the five signs to look out for that will indicate the housing market is rebounding from COVID-19, which include declines in jobless claims and the end of stay-at-home orders. Then, Real Capital Analytics explains how to make sense of apartment valuations in these times, and what factors could impact pricing in the near term. Finally, Brookings points out that declining population growth in major urban areas was prevalent before the coronavirus, as more individuals have moved to smaller metros or more suburban communities in recent years.
COVID-19 Impact on Multifamily Demand and Operations
Arbor Chatter – April 8
“The unprecedented and rapidly evolving pandemic has thrust building operators into a crisis management mode across a range of activities, including property maintenance, hygiene and safety, rent collection, and accommodating a significant spike in home deliveries.”
Outlook for Multifamily Market Financing
National Association of Realtors – April 8
“The demand for multifamily properties is fundamentally strong with low rental vacancy rates in many metropolitan areas, which is a positive factor for multifamily investors.”
5 Indicators That Will Show When the Housing Market Is Rebounding From COVID-19
HousingWire – April 7
“While no one could truly know when we’ll see the end of the coronavirus, we can at least know what signs to look for that the housing market is on the rebound.”
Valuing US Apartments in the Midst of COVID-19
Real Capital Analytics – April 7
“All one need do is take today’s cap rate and look at different combinations of changes in property income and cap rate expansions and calculate the resulting change in prices.”
Even Before Coronavirus, Census Shows U.S. Cities’ Growth Was Stagnating
Brookings – April 6
“As the urban population disperses, smaller metropolitan areas, suburban counties, and populations residing outside of metropolitan areas are seeing more modest growth declines and even additional population gains.”
