This Week in Multifamily News: Apartment Performance Slumps in May

As May turned to June and job losses continued, the U.S. apartment market took its most significant dip in performance since the COVID-19 pandemic began. In response to the continued economic fall-out, many operators are beginning to preserve occupancy at the price of rent growth.

Catch up on this week in multifamily news here.

Occupancy and Rent Growth Deteriorate in May

U.S. apartment occupancy dipped in May, and annual rent cuts were enacted for the first time since 2010. The market remains essentially full, but occupancy is off meaningfully from the near historical highs of 2019. Meanwhile, most local markets saw rents in executed leases drop even further than asking prices, according RealPage’s exclusive actual lease transaction information. 

Credit Cards Shouldn’t Get Credit for Propping Up Payments

Apartment renters have mostly kept up with their monthly payments over the past two months. But they’re not relying on credit to do so. As property managers have absorbed credit card fees and encouraged online payments, renters have increasingly turned to these new methods of payment over writing checks that often require person-to-person contact.

Demand Rebounds in May

Proving there’s been some pent-up demand as the COVID-19 pandemic threw a wrench in usual leasing protocols, May 2020 new lease signings outpaced year-ago figures. In the last week of May alone, lease signings were nearly 20% higher than at the same time last year.

Webcast: Creating the New Normal

As apartment operators prepare to return to a new normal for operations, the re-opening of leasing offices, amenities, in-unit maintenance and more requires forethought. RealPage Deputy Chief Economist Jay Parsons gathers expert intelligence from industry leaders such as Camden Property Trust EVP Laurie Baker, AMLI President and CEO Maria Banks, and Kairoi Residential EVP Tammy Freiling. Register for the June 16 webcast here.

For further reading on the multifamily industry, check out these articles.

New Household Data Show Renters Face an Uncertain Housing Future from National Multifamily Housing Council
CMBS Distress Is Only the Tip of the Iceberg from Real Capital Analytics
Seven CRE Economists Offer Their Advice and Predictions for the Sector from National Real Estate Investor
U.S. Economy Faces Long Recovery from Coronavirus Effects, Experts Say from The Wall Street Journal
An ‘Avalanche of Evictions’ Could Be Bearing Down on America’s Renters from The New York Times