This week we review industry news offering investment insights, accounting for coronavirus-related shifts in consumer preferences and behavior. First, Arbor Realty Trust and Chandan Economics’ most recent quarterly report on small multifamily investment trends analyzes the current state of the market. It reviews key metrics that indicate an optimistic future outlook. The Arbor and Chandan Economics quarterly report on single-family rental investment trends provides the economic data that backs a projection of continued growth in SFRs, throughout and following the COVID-19 pandemic. Next, RealPage looks at top performing markets for Class A apartments. In a Forbes article, economist Sam Chandan explains how a lapse in governmental support during the current health and economic crisis would affect multifamily. Finally, the National Association of Realtors places the multifamily sector in context, showing its relatively strong performance, particularly when compared to other commercial real estate asset classes.

Q2 2020 Small Multifamily Investment Trends Report

Arbor Chatter – August 10

“All else equal, while the small multifamily sector will not go unscathed, the depth of agency support and stickiness of underlying user demand will insulate it from the worst of COVID-19’s economic toll.”

Q2 2020 Single-Family Rental Investment Trends Report

Arbor Chatter – August 13

“Based on pricing in public equity markets, migration patterns, and measures of asset pricing, single-family rentals (SFRs) are attracting attention as a rising subsector of residential real estate.”

Apartment Markets with Top Class A Performances

RealPage – August 10

“Many other markets still seeing healthy performances in Class A stock are located in the Midwest region and didn’t see the same level of new supply pressure as many Sun Belt and coastal markets.”

Protections Lapse for the Nation’s Most Vulnerable Renters, Imperiling Their Small Landlords as Well

Forbes – August 12

“Absent the financial support of the CARES Act or clear timing for new benefits, millions of families that met their rent obligations in the initial months of the pandemic will join the ranks of families seeking relief or at risk of eviction.”

July 2020 Commercial Real Estate Market Trends and Outlook

National Association of Realtors – August 4

“Industrial and multifamily remain as the strongest legs of the commercial real estate market, in both transactions for structures and land.”