Apartment Rent Payments Hit 90% in August’s Third Week
The National Multifamily Housing Council reports that 90% of households living in the country’s stock of professionally-managed market-rate apartment properties have paid rent for August as of the 20th.
The latest results run 2.1 percentage points under the 92.1% payment level recorded through August 20, 2019.
The findings come from the National Multifamily Housing Council’s Rent Payment Tracker research, compiling information provided by five technology firms, including RealPage, Inc., for more than 11 million market-rate apartment units.
Interrupted Unemployment Assistance Leaves Households Vulnerable
While it appears that payments again will come in at levels fairly close to normal for the month of August, September’s collections could prove to be more challenging.
Those who have lost jobs are now receiving only state-level benefits that average a little less than $400 per week, since the CARES Act program that provided an additional $600 per week of federal assistance has come to an end.
Under the Lost Wages Supplemental Payment Assistance Program, the Federal Emergency Management Agency can authorize an additional $300 per week in help over the short term, and states participating in the program can opt to contribute another $100 to those efforts.
FEMA assistance is being distributed to those who are unemployed in Arizona, and payments will begin shortly in some other locations that include Texas, Louisiana and Kentucky. However, it still remains unclear whether most states will be approved for the FEMA funds or when the additional assistance that is approved can actually begin to be delivered.
Payments in Class C Product Continue to Lag
Following the pattern seen since the rent collections research was initiated for the NMHC in April, RealPage information shows that missed payments are most frequent in lower-priced Class C properties. Through August 20, this month’s rent was collected from 86.2% of the residents in the Class C stock, versus the payment rates of 90.9% in the Class B properties and 90.2% in the Class A projects.
Looking at state-level payment rates, collections are stellar in five states. More than 95% of those living in professionally-management properties have paid their August rent in Maine, West Virginia, Utah, Rhode Island and Idaho.
On the other hand, payments are in from only 84.8% of the households in Oklahoma. Other states where collections lag include Iowa, Nevada, Kentucky and Indiana.