Insights on the Stability and Predictability of the Sector
COVID-19 has prompted substantial changes to lease activity, operations, renter behavior, and investment activity within the U.S. multifamily market. With growing calls for affordability and rent regulation already taking a toll on investment in the sector, the pandemic’s impact on renters’ employment status added fuel to the fire.
Countervailing effects, like a decline in new construction as a response to the economic slowdown, could help normalize rent growth and vacancies. But, if the past proves anything, it’s that the multifamily sector is resilient during downturns, and transaction volume is slow to react as real estate transactions take time to complete.
In this article, Matthews™ will review the short and long-term COVID-19 implications and provide information and insight into multifamily fundamentals.
