This week’s review of industry news underscores how the threat of COVID-19 is driving demand for housing with less density. In the first article, Arbor Realty Trust’s Chairman and CEO Ivan Kaufman explains to GlobeSt.com how although multifamily has fared well during the pandemic, a set of conditions including expiration of federal assistance programs could create substantial disruptions. RENTCafé reports that its survey found 43% of would-be home buyers plan to stick to renting due to the economic uncertainty caused by the COVID-19 crisis. Next, Multi-Housing News reviews pricing apartments during today’s economic turbulence. A Pew Research Center study looks at how the coronavirus has caused millions of Americans to relocate. Finally, the Washington Post covers how the continued presence of the virus is increasing interest in the suburbs, particularly with single-family rentals.
Multifamily Posed for a Reversal in Fortune
GlobeSt.com – July 6
“[Ivan] Kaufman tells GlobeSt.com, as an asset class multifamily has performed remarkably well to date. Much of that has been due to the CARES Act and its supplemental unemployment payments, which have been credited to keeping rent payments as high as they have been, he says.”
Pandemic Hinders Plans for 43% of Renters Ready to Buy a Home
RENTCafé – July 8
“On top of high home prices, this is yet another deterrent forcing many renters to further delay or give up on the most important archetype of the American Dream.”
How Do You Price Apartments in a Recession?
Multi-Housing News – July 7
“During the past two decades, many firms have come to rely on sophisticated pricing and revenue management systems to manage their daily operations. But since the advent of COVID-19, pricing units has become a pioneering effort.”
About a Fifth of U.S. Adults Moved Due to COVID-19 or Know Someone Who Did
Pew Research – July 6
“3% say they themselves moved permanently or temporarily due to the coronavirus pandemic, and 6% say someone moved into their household because of it. An additional 14% of those who did not personally experience relocation say they know someone else who moved.”
Buyer Interest in Suburban Over City Living Grows in May, Report Finds
The Washington Post – July 9
“Some real estate analysts are seeing indicators that during the coronavirus pandemic, buyers are more attracted to suburban locations with private outdoor space and to single-family homes.”