While effective asking rent change performances have plummeted across the board, operators in Class C apartments continue to cling to modest price increases. The nation’s comparatively affordable Class C units logged rent growth of 0.3% in the year-ending August. On the other hand, operators in Class B stock cut rents 1.3%, while Class A units, which are generally concentrated in pricey (and recently highly-developed) urban cores, saw rent cuts of 2.8%. Before the COVID-19 pandemic shook the U.S. apartment industry, Class B units were consistently the nation’s top performer for rent growth. Beginning in April, performances plunged across all asset classes. While Class C units, generally occupied by working-class and service industry renters, are still seeing mild growth, the current performance is a far cry from the 2.7% annual increase seen just a few months earlier in March.
