COVID’s 5 Least & Most Impacted Multifamily Markets

[Ellie Perlman]

According to Yardi Matrix most recent publication, “COVID-19: A Game Changer for Multifamily", nationally, rents have dropped by 0.4% since the arrival of COVID. This past week I decided to focus on some key areas of data: which markets have seen the largest increases and decreases to rents during the onset months of COVID-19, as well as the current unemployment rates and demand for apartments within those respective markets. Factors such as employment and demand are two key components to take into consideration when evaluating which markets to invest in, as you well know. I thought you might find the data helpful in keeping up with current market trends. Interpretation can of course go in several direction, but what’s most interesting about this current trend is it seems the markets with less demand for multifamily housing display a more direct and severe impact, which is why you are more likely to see operators being forced to lower rents. Remaining vigilant of market conditions can allow you to modify your strategy, and adjust to ensure you can still achieve your overall investment goal even in challenging circumstances!

The 5 Least Impacted Markets:

5. Omaha, Nebraska

· 2-Month Rent Change Post C19: +0.8%

· Current Unemployment Rate: 6.5%

· Percentage of Renters: 40%


4. Huntsville, Alabama

· 2-Month Rent Change Post C19: +0.9%

· Current Unemployment Rate: 5.1%

· Percentage of Renters: 42%


3. Memphis, Tennessee

· 2-Month Rent Change Post C19: +1.3%

· Current Unemployment Rate: 7.2%

· Percentage of Renters: 42%


2. Mobile, Alabama

· 2-Month Rent Change Post C19: +1.3%

· Current Unemployment Rate: 12.6%

· Percentage of Renters: 44%


1. Portland, Maine

· 2-Month Rent Change Post C19: +1.7%

· Current Unemployment Rate: 10.2%

· Percentage of Renters: 55.7%


The 5 Most Impacted Markets:


5. Boston, Massachusetts

· 2-Month Rent Change Post C19: -1.5%

· Current Unemployment Rate: 16.3%

· Percentage of Renters: 51%


4. Nashville, Tennessee

· 2-Month Rent Change Post C19: -1.7%

· Current Unemployment Rate: 15.2%

· Percentage of Renters: 46%


3. San Jose, California

· 2-Month Rent Change Post C19: -1.7%

· Current Unemployment Rate: 5.0%

· Percentage of Renters: 26%


2. San Diego, California

· 2-Month Rent Change Post C19: -1.8%

· Current Unemployment Rate: 13.9%

· Percentage of Renters: 39%


1. Midland-Odessa, Texas

· 2-Month Rent Change Post C19: -8.6%

· Current Unemployment Rate: 12.4%

· Percentage of Renters: 30%

Sources:

Yardi Matrix

US Bureau of Labor Statistics

RentCafe.com

[Harrison Smith]

Portland, Maine is a great market. We own 500+ units and manage another 500+ units for other investors and we are 100% collected since this began, while still being able to take minor rent increases. If you want somewhere to invest with great quality of life, then Maine should be where you go!