With over 40 million Americans sheltering-in-place in their apartment homes, updated data from the National Multifamily Housing Council (NMHC) shows that despite COVID-19 and the subsequent economic crisis, most renters are completing their rent obligation. As of April 19th, 89 percent of renters had made a full or partial payment, up five percent from last week, and 20 percent from the week prior. These latest numbers reflect a payment rate of 95 percent compared to the same time last month.
A Closer Look at the Data
After three weeks of tracking rent data, it is evident that residents are doing what they can to meet their obligation. As we approach the peak, these numbers are encouraging, and it is expected that payment programs, deferrals, and stimulus checks are contributing to this positive number. It is estimated that nationally, about 1/3 of renters are on payment plans, a 400 percent increase.
Each week national rent payment has gradually increased, but data is varied by region and asset class. The Westcoast is experiencing a greater outcry for rent deferrals compared to the Northwest. Further, markets that have been hit harder by COVID-19, such as New York and New Orleans, and markets where unemployment is higher, for example, markets with industries that focus on oil and gas, are experiencing lower rent collections. Markets that focus on services and tech, such as Sacramento, San Diego, and Virginia Beach, are better positioned compared to markets concentrated on retail, hospitality, and tourism, like Las Vegas and Orlando.
Information is sourced from NMHC who will be monitoring and released updated Rent Payment Tracker data weekly. The next release is scheduled for May 8th. Please be on the lookout for reports with updated information.
Matthews™ is committed to keeping the commercial real estate community informed and continuing to offer our services during these market changes. With updates and challenges released daily, please contact a Matthews™ specialized agent for guidance during this uncertain time, and for more insights on COVID-19 and CRE, visit our dedicated coronavirus website.
The Centers for Disease Control and Prevention is offering information and updates on the novel coronavirus (COVID-19) outbreak, the World Health Organization is tracking the number and location of confirmed cases of the virus and Building Owners and Managers Association International has provided the following emergency preparedness guidelines for commercial and residential property managers and landlords.