As we’ve rounded the start of a new quarter during 2020’s COVID-19 pandemic, new data suggests a slowdown in comparison to the past few months. July Rent Week collections and 2nd quarter demand both underwhelmed compared to pre-pandemic levels.
Catch up on this week in multifamily news here.
July Rent Week Underperforms Last Year
Just over 77% of households living in professionally managed apartments had paid rent by July 6, according to the National Multifamily Housing Council. This was a bit sluggish compared to what we’ve seen recently as processing of payments was likely delayed by the three-day holiday weekend.
Prime Leasing Season Off to Slow Start
Between 132,000 units and 188,000 units are generally absorbed in the 2nd quarter, which marks the start of prime leasing season. In 2020, 2nd quarter saw demand for only 34,000 units, chiefly driven by absorption Sun Belt markets.
Proximity Premium: Students Still Pay Most to Live by Campus
Despite school closings during the COVID-19 pandemic, students are still paying a premium to live in denser housing closer to campus. Students living within a half-mile to campus pay the most in rent, compared to those living farther from school.
Dive Deep into July Data
If you’ve seen the headline collection and demand figures and want more substance into guest card collections, website traffic, retention rates and more, join RealPage economists Greg Willett and Jay Parsons, as they walk through the state of COVID-19’s impact to the industry thus far and share forecasts for what lies ahead. Watch the webcast on demand here.
Webcast: Recapping 2nd Quarter & Looking Forward
With demand lagging in 2nd quarter, forecasting the near-term future is of utmost importance to most operators as they preserve occupancy going into the fall. Join RealPage analysts Greg Willett and Adam Couch in a webcast on July 14, as they examine metro-level performance trends. Register here.
For further reading on COVID-19 and the multifamily industry, check out these articles.
NMHC Rent Payment Tracker Finds 77.4 Percent of Apartment Households Paid Rent as of July 6 from National Multifamily Housing Council
Apartment Industry Advocates Lobby for New Stimulus Legislation as Senate Goes on Recess from National Real Estate Investor
Multifamily Investors Starting to Return to the Market from Multifamily Executive
Chart: Global Activity Tracker, Americas Drop Deepens from Real Capital Analytics
Mnuchin Expects New Stimulus Deal by End of July from the Wall Street Journal