It’s been two weeks since supplemental unemployment benefits expired, and several indicators point to uncertainty in the U.S. apartment market. Initial rent collections were near normal in August, but some renters have lost confidence in their ability to pay rent in the near term.
Catch up on this week’s news in the multifamily industry here.
August Rent Week Tracks Normally
Just over 79% of residents living in professionally managed apartments had paid rent in the first week of August, according to the National Multifamily Housing Council. That rate hovers around initial rent payments in past months and years, but near-term concerns loom after the sunset of expanded unemployment benefits.
Renter Confidence Slumps in Late July
More than a third of U.S. renters have lost confidence in their ability to keep up with future rent payments, according to the U.S. Census Bureau. Many renters cite dependence on enhanced unemployment benefits and stimulus money to keep up with rent obligations.
Strong Leasing in July Could Falter
In July, website traffic and guest card creation outperformed the year-ago rates. Retention and occupancy remain healthy, but federal unemployment benefits have no doubt buoyed performance, causing uncertainty in the near term.
Student Housing Pre-Leasing Holds as Rent Growth Slows
In the final push before students move back to campus, pre-leasing had held up pretty well, barely trailing the year-ago rate. However, operators have pulled back on asking rent growth to maintain occupancy, mostly at properties closest to campus.
August Apartment Performance Readings
RealPage economists Greg Willett and Jay Parsons break down August data, including rent payments, leasing traffic, guest card creation and various market performance. Watch the webcast on demand.
For further reading on this week in industry news, check out these articles.
Weekly Unemployment Claims Drop Below One Million for First Time Since March from The Wall Street Journal
Congressional Negotiations Stall as President Threatens Executive Order on Evictions from National Multifamily Housing Council
The Current Status of Eviction Bans by State from National Real Estate Investor
Global Cities Property Price Growth Slows in Q2 from Real Capital Analytics
Job Growth Slowed in July, Signaling a Loss of Economic Momentum from The New York Times