Class C Apartment Operators Resort to Rent Cuts
The nation’s Class C apartments saw effective asking rent cuts in October, after holding onto slight growth during much of the COVID-19 pandemic. When rent declines swept the nation’s apartment market starting in May, the more affordable Class C units were the last remaining holdout. But several months of economic strife have finally weighed on this product line enough to motivate year-over-year rent cuts of 1% in October. Meanwhile, Class B stock also saw price declines of 1%, essentially in line with the 1.1% downturn from September. Operators in the more expensive Class A product line eased up a little on annual rent cuts – going from 3.2% in September to 2.2% in October. In comparison, all three asset classes were recording price increases near the 3% mark in March, before the downturn hit.