This week’s selection of industry news tracks multifamily performance and looks at how COVID-19 is affecting both the management and design of properties. In the first article, Moody Analytics’ REIS reports that multifamily performed better in the second quarter than expected, but government support will be needed to maintain this stability. The summary also looks at factors in the CBMS market, comparing agency and non-agency loans. RealPage highlights smaller apartment markets demonstrating strong performances, despite the current global pandemic. In the third article, Zillow notes that rent growth and employment trends are indicating renter preferences are tilting towards the suburbs. National Real Estate Investor discusses how tenants working and living at home are creating additional demands on apartment owners and operators, in terms of required services and the wear-and-tear on units. Finally, Multi-Housing News reviews how COVID-19 is affecting multifamily designs, including an increased demand for balconies and more space in areas with shared amenities.
CMBS Newsflash: On the Trail of Multifamily Performance
Moody’s Analytics REIS – August 4
“With no doubt, multifamily properties have performed far better than expected by most in early March. Second quarter data shows a lack of stress on both the capital and space markets.”
Several Small Apartment Markets Still Seeing Big Performance
RealPage – August 4
“These smaller markets – with apartment bases ranging in size from 25,400 units to 81,000 units – are also areas that are forecasted to remain comparatively healthy in the near term.”
Urban Rent Slowdown May Signal Renters are Edging Toward the Suburbs
Zillow – August 2
“Rent price growth in urban zip codes has slowed more than those in suburban areas since February, one outcome of unemployment affecting urban renters particularly hard and a possible signal that preferences are shifting in favor of the suburbs.”
How to Manage Multifamily Assets When Residents No Longer Leave
NREI – August 5
“With many Americans working and learning from home, multifamily properties are facing increased wear-and-tear, greater volumes of waste and recycling and demands for services.”
How Will the Pandemic Impact Future Apartments?
Multi-Housing News – August 5
“While millions of multifamily residents sheltered in place for months during the nation’s COVID-19-imposed shutdown, apartments became makeshift offices, classrooms, gyms and hospital rooms.”