This week’s roundup highlights how COVID-19 is impacting metros and their multifamily markets differently, the decline of affordable rental housing, and what apartment investment opportunities might look like as a result of the coronavirus. First, Arbor’s Chatter blog provides an in-depth look on how the outbreak is affecting markets in different ways, with cities that rely heavily on tourism, entertainment and retail likely to take the biggest hits. Next, Multi-Housing News discusses the revised expectations for new multifamily supply and construction activity in 2020 as a result of COVID-19, noting the number of new units built will likely be much lower than previously forecasted. Harvard’s Joint Center for Housing Studies takes a look at the factors contributing to a deficit of affordable housing options, including the growing presence of high-income renters, the country’s overall limited housing supply and new construction activity focusing on Class A or high-cost properties. Then, GlobeSt offers tips on how multifamily investors can find opportunities and recalibrate their portfolios during COVID-19 and be prepared for future downturns. Finally, MBA covers how the coronavirus has impacted the small multifamily sector, citing research and insights from Arbor’s Q1 2020 small multifamily report.
Arbor Chatter – May 15
Among the largest five U.S. metros, Los Angeles and Houston, with shares of around 30% impacted renters, are relatively more at risk compared to New York, Chicago and Dallas.
Multi-Housing News – May 12
“New supply expectations fall this year, but future construction impact hinges on the downturn’s severity and length.”
Harvard JCHS – May 11
“The growth in high-income renters, the nation’s limited housing supply, and the tendency for new construction to be aimed at the top of the market have all contributed to the decline in low-cost rental housing over the past several decades.”
GlobeSt – May 11
“Like nearly every industry, the multifamily real estate market has taken a hit during the COVID-19 pandemic, but it may have one advantage that some industries don’t: people always need a place to live.”
MBA – May 12
“Small multifamily originations reached a record-high $59.2 billion last year. The current estimate represents a 6.7 percent lending activity decline.”