This week’s roundup highlights how COVID-19 is impacting metros and their multifamily markets differently, the decline of affordable rental housing, and what apartment investment opportunities might look like as a result of the coronavirus. First, Arbor’s Chatter blog provides an in-depth look on how the outbreak is affecting markets in different ways, with cities that rely heavily on tourism, entertainment and retail likely to take the biggest hits. Next, Multi-Housing News discusses the revised expectations for new multifamily supply and construction activity in 2020 as a result of COVID-19, noting the number of new units built will likely be much lower than previously forecasted. Harvard’s Joint Center for Housing Studies takes a look at the factors contributing to a deficit of affordable housing options, including the growing presence of high-income renters, the country’s overall limited housing supply and new construction activity focusing on Class A or high-cost properties. Then, GlobeSt offers tips on how multifamily investors can find opportunities and recalibrate their portfolios during COVID-19 and be prepared for future downturns. Finally, MBA covers how the coronavirus has impacted the small multifamily sector, citing research and insights from Arbor’s Q1 2020 small multifamily report.
COVID-19 Report: Metro Labor Markets and Multifamily Demand
Arbor Chatter – May 15
Among the largest five U.S. metros, Los Angeles and Houston, with shares of around 30% impacted renters, are relatively more at risk compared to New York, Chicago and Dallas.
Coronavirus Dents Multifamily Development
Multi-Housing News – May 12
“New supply expectations fall this year, but future construction impact hinges on the downturn’s severity and length.”
The Continuing Decline of Low-Cost Rentals
Harvard JCHS – May 11
“The growth in high-income renters, the nation’s limited housing supply, and the tendency for new construction to be aimed at the top of the market have all contributed to the decline in low-cost rental housing over the past several decades.”
Waiting Out Multifamily Opportunities in the Aftermath
GlobeSt – May 11
“Like nearly every industry, the multifamily real estate market has taken a hit during the COVID-19 pandemic, but it may have one advantage that some industries don’t: people always need a place to live.”
COVID-19 Economic Impact Reaches Small Multifamily Sector
MBA – May 12
“Small multifamily originations reached a record-high $59.2 billion last year. The current estimate represents a 6.7 percent lending activity decline.”