This week’s news selections highlight the multiple ways in which COVID-19 is affecting the multifamily and SFR sectors. An Arbor Chatter blog article covers an IMN panel on financing SFR build-to-rent and finds although deal flow is slower, interest in the product is thriving. Fannie Mae projects slightly improved economic growth expectations for 2020, subject to revisions based on the course of the pandemic. In a third article, RealPage reports on how in the second quarter of 2020, metros in the South performed with a positive demand. The Urban Institute suggests policymakers take four steps to keep tenants in place and to prevent housing instability. Finally, MBA provides a real estate finance forecast which anticipates declines in originations and property values in 2020, followed by partial rebounds next year.

Financing SFR Build-to-Rent in Today’s COVID-19 Climate

Arbor Chatter – July 16

“Because the [SFR] asset class grew out of the Great Recession, it has shown its ability to withstand certain economic hardships.”

Economic Growth Expectations Improve Slightly, Remain Tied to Broader COVID-19 Recovery

Fannie Mae – July 14

“Our base scenario for the economy improved but did not shift dramatically from last month; we now expect full-year 2020 GDP to decline 4.2 percent before growing in 2021 by 4.0 percent.”

South Region Commands Big Demand in 2Q

RealPage – July 10

“National demand in 2nd quarter 2020 totaled roughly 34,000 units. While positive, that number was well behind the typical demand tally seen during the year’s peak leasing season.”

Four Ways to Keep Renters from Falling Off the Eviction Cliff

Urban Institute – July 13

“Renters are facing two threats: the $600 extra weekly unemployment insurance payments are set to expire at the end of July, and most eviction moratoria have already expired or will very soon.”

MBA Commercial Real Estate Finance Forecast

MBA Market Intelligence Blog – July 16

“The key takeaway is that we expect originations to drop significantly this year before making a sharp, partial rebound next year.”