ABODO’s Property Management & Multifamily Roundup (June 22-26, 2020)

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In this week’s installment of the ABODO Property Management & Multifamily Roundup (June 22-26), 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 adapting amenities for the “new normal.”

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

June 22, 2020

NMHC Reports 92.2% of Apartment Households Paid Rent by June 20

Multifamily Executive | By Mary Salmonsen

“Out of 11.4 million professionally managed apartment households across the country, 92.2% had made a full or partial rent payment by June 20, according to the National Multifamily Housing Council’s latest Rent Payment Tracker data. This number matches the share of households who had paid their June rent through June 20, 2019, and compares with the 90.8% of households that had paid their May rent by May 20, 2020.”

How Family-Friendly Apartments Bridge the Gap

Multi-Housing News | By Jeffrey Steele

“Families comprise about one-third of the U.S. renting population, while apartment buildings targeted at young urbanites without kids make up the majority of all new rental housing in the country. So asserts a new report from the Urban Land Institute Family Renter Housing: A Response to the Changing Growth Dynamics of the Next Decade, which lays out the extent of the problem and presents a number of case studies that illustrate potential solutions to the family rental housing shortage. Among these are rental townhomes, urban apartments of greater size and tax incentives to build affordable apartment units.”

June 23, 2020

Rent is Dropping Across the Country

HousingWire | By Julia Falcon

“As of June 13, the National Multifamily Housing Council said that 89% of renters in professionally managed apartments had paid rent across the U.S.Of those who paid rent, 84% of the residents living in lower-priced Class C properties paid rent in total, compared to the collection rates of 90.3% to 90.4% in luxury Class A projects and middle-market Class B communities, RealPage said. Asking prices have also dropped. For the first time since the middle of 2010, there’s a decline of 0.5% in effective asking rents between May 2019 and May 2020. Executed new lease rent has dropped at least 8%, which is double the norm in the U.S., in Boston, Detroit, New York, Salt Lake City, San Francisco and San Jose, California. In San Francisco, one-bedroom rents have dropped 9.2% since June 2019, according to SFGate. Boston has felt the impact from universities and colleges being out, as about 65,000 students live off-campus, the Boston Globe said, and rent is down 2%.”

Executives Discuss COVID-19, Downturn, and Affordability Crisis

Multifamily Executive | By Christine Serlin

“Back by popular demand at this year’s Multifamily Executive Conference will be the annual Executive Power Panel, where top leaders including Avanath Capital Management chairman and CEO Daryl Carter, GID COO Greg Bates, and Pinnacle president and CEO Rick Graf will reveal how they are dealing with the latest market conditions and preparing for the future. Multifamily Executive checked in with them in late spring to discuss their top concerns and how they think the COVID-19 pandemic will reshape the industry.”

June 24, 2020

Adapting Amenities: The Must-Have Amenities for Gen Z Renters

Multifamily Executive | By Aly J. Yale

“Though the youngest of this cohort are still at home with mom and dad, those on the older end are leaving the nest, graduating college, and out there hunting for apartments of their own. And what are they looking for? It’s unlike any other generation that’s come before them. Gen Z is gravitating toward a new breed of rental properties—ones that meet their need for convenience, cater to their affinity for technology, and align with both their entrepreneurial and social spirits.”

The Outlook for a Post-Pandemic Future in Property Management

Forbes | By Nathaniel Kunes

“Back in March of this year, property managers across the country quickly pivoted strategies to address Covid-19 head-on. They implemented new policies, revised safety procedures for residents and staff, shifted a bulk of associates to remote working models and dealt with managing resident queries and concerns over monthly rent payments. It was a month unlike any other. Fast forward to today when the whole world continues to deal with the impact of the pandemic, and property managers must continually adjust to best address some of the new realities.”

June 25, 2020

Should You Buy or Rent? Low Mortgage Rates Make it a Good Time to Buy in Some Markets

HousingWire | By Mary Ann Azevedo

“What a difference a year makes. In February 2019, we reported on how it was increasingly difficult to find a market where it made more sense to buy than rent. Fast forward 16 months and one pandemic later, and it’s safe to say that the rent-versus-buy gap is only shrinking with each passing day. According to realtor.com, over 80% of large counties saw the gap between the cost of renting vs. buying a home shrink in the first quarter of 2020. And that was at the beginning of the COVID-19 pandemic’s impact on the housing market. Since the end of the first quarter, of course, COVID-19 has dramatically and further affected the economy. As such, it remains to be seen just how local housing markets calibrate to new conditions, realtor.com economic analyst Nicolas Bedo writes in the company’s first-quarter report.”

Apartment Investment Market Index Experienced Strong Growth Driven by Falling Mortgage Rates

Freddie Mac | By Freddie Mac Editorial Team

“The Freddie Mac (OTCQB: FMCC) Multifamily Apartment Investment Market Index rose by 1.8% in Q1 2020 after a modest quarterly decline (1.4%) in Q4 2019. The growth was largely driven by mortgage rates decreasing by 21 bps and supported by positive net operating income (NOI) growth nationwide and in most markets. On an annual basis, AIMI rose to 11% as mortgage rates experienced their second-largest annual decline (95 bps) in AIMI history. “The substantial drop in mortgage rates has been a significant driving factor in the growth of AIMI this quarter and over the course of the year,” said Steve Guggenmos, vice president of Freddie Mac Multifamily Research and Modeling. “The index reflects a healthy market for investors bolstered by strong net operating income growth and high demand for rental units across the country.”

June 26, 2020

The 10 U.S. Cities Where Residents Have to Work the Most Hours to Pay Their Rent

Business Insider | By Katie Warren

“As the US continues to battle the coronavirus pandemic even as states reopen, large cities with high costs of living may be losing their appeal. During the pandemic, more than 420,000 people left New York City for places like the Hamptons and upstate New York. Houses are flying off the market in the suburbs of Connecticut and New York. The pandemic has accelerated the trend of people fleeing cities for less dense areas with lower costs of living, as Business Insider’s Aria Bendix recently reported.”

How Multifamily Pricing Systems are Handling this Downturn

Multifamily Insiders | By Dom Beveridge

“Over the last few months, we at D2 have been developing and sharing insight about the state of the market and the ways that companies are managing it. As the world has lurched from crisis to crisis, we have held weekly discussions to figure out what’s going on. Last week was no exception, although we focused on an area that’s close to our hearts: pricing and revenue management (PRM) systems.”

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

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