ABODO’s Property Management & Multifamily Roundup (June 15-19, 2020)

in Popular, Property Management Tips

Property Management News

In this week’s installment of the ABODO Property Management & Multifamily Roundup (June 15-19), we’ll take you through the week in property management news, specifically, you’ll learn how the industry is preparing itself for life after quarantine with property management technology innovations, multifamily outlooks from the experts, updates on rent collections, insight into the permanent changes in real estate, and updates on senior housing.

Here’s the latest in property management news and multifamily updates.

June 15, 2020

Homeownership Decline to Propel Rental Resiliency

Multi-Housing News | By Jeffrey Steele

“Homeownership rates have risen the past three years, but new evidence points to 2020’s steep income drops sparking a shift away from homebuying. Upcoming years should see declining homeownership rates and increased demand for renting.”

Multifamily Rentals Continue Slide in May

GlobeSt | By Patrick Smith

“In what is normally considered prime leasing season, rents declined nationally by .3% month over month, with the largest drops in gateway markets that were the first to implement pandemic- inspired lockdowns, according to a report released by commercial real estate data and research company Yardi Matrix.”

June 16, 2020

Use Technology to Optimize Leasing in an Age of Social Distancing

Multifamily Executive | By Joe Bousquin

“For many apartment operators, the rapid shift in the way people work, shop, and live in response to the COVID-19 pandemic has only accelerated technology adoption in the multifamily industry. Perhaps nowhere has that been clearer than in using technology to optimize the leasing process in 2020.”

Rent Payments Reach 89 Percent

Multi-Housing News | By Holly Dutton

“Rental payments in the U.S. hit 89 percent as of June 13, a jump of more than 8 percent from the previous week, according to the latest report from the National Multifamily Housing Council. By comparison, during the same time period last year, 88 percent of renters paid full or partial rent payments by June 13, 2019. The figure is a 1.3 percent increase from the share of rental payments tracked during the same time period last month. Last week’s report from NMHC, which gave the first look at June’s numbers, showed that 80.8 percent of renters had paid by June 6.”

June 17, 2020

Banks Shaking Off Lending Cobwebs, Starting with Multifamily

Bisnow | By Bisnow Editorial Team

“Through March and April, the institutional lending market was all but frozen. But as New York City prepares to enter Phase 2 of its reopening, the frost is cautiously thawing. Over the past month, brokers have seen more interest from banks in placing loans, they told Bisnow. Where they have decided to put their financing gives insight into the safest asset classes to come out of this unprecedented event, multifamily top among them.”

COVID’s Uneven Impact on Senior Housing Occupancy

Multi-Housing News | By Greg Isaacson

“Stabilized occupancy rates at the nation’s assisted living facilities fell to 88.1 percent in May, the lowest level on record, as the COVID-19 crisis slowed the pace of move-ins to the property type, according to data released by the National Investment Center for Seniors Housing & Care (NIC). Assisted living occupancy across major metropolitan markets stood at 87.9 percent in February 2020 and 87.8 percent in March, before dropping 260 basis points from March to May, a new report by the nonprofit shows. The pandemic had a milder impact on independent living properties, where occupancy fell by 190 basis points to 89.5 percent from March to May.”

June 18, 2020

Multifamily Construction Starts to Bounce Back with Ten-Percent Rise in May

MultifamilyBiz | By MultifamilyBiz Editorial Team

“Total construction starts rose 3% from April to May to a seasonally adjusted annual rate of $595.1 billion, following a 25% decline the previous month. Several large nonresidential building projects broke ground in May resulting in the gain. Removing those large projects from the statistics would have resulted in no change in starts over the month. In May, nonresidential buildings increased 8%, while residential building starts rose 4%. Nonbuilding starts, however, declined 4% during the month.”

Is New Survey a Sign that Multifamily Market Might Soon Face Greater COVID-19 Challenges?

Multi-Housing News | By Dan Rafter

“The multifamily market has remained surprisingly strong during the COVID-19 pandemic, with most tenants still paying their monthly rents on time. A new survey of renters, though, suggests that despite this early success the apartment market still faces challenges. The big challenge? The high unemployment rate caused by the shutdowns and stay-at-home orders levied by states to control the spread of the coronavirus. A growing number of renters participating in a new survey by the National Foundation for Credit Counseling and BAI say they are worried about paying their bills once the government’s enhanced unemployment benefits end. These benefits are set to expire on July 31.”

June 19, 2020

Why Rents Haven’t Dropped in New York City

The New York Times | By Kim Velsey

“As hundreds of thousands of New Yorkers have fled the city to wait out the coronavirus pandemic, renters who have stayed in their apartments are wondering if and when rents might fall. With so many fewer people in the city and the region just now taking tentative steps toward reopening, many tenants have hoped and believed that landlords, presumably struggling to fill vacancies, would be willing to reduce rents. But those looking to sign or renew leases in the last few months say that while some landlords are grudgingly offering short-term concessions, like a free month of rent, most are unwilling to budge on pre-pandemic pricing and, in some cases, are even increasing rents.”

Will New Pandemic Changes Be Permanent?

GlobeSt | By Kelsi Maree Borland

“The pandemic has been the catalyst for a bevy of changes in real estate. While there have been a lot of predictions as to how long the pandemic will last and the long-term impact, some changes are certainly here to stay. Property managers are busy weighing the long-term changes, and a recent survey from Appfolio shows that many are prepared for these new norms to be permanent.”

Be sure to check in with us for our next roundup — coming next week.

Read More Posts / View All