For the second month in a row, U.S. average rents crept up, increasing by an average of $1 nationwide. And so far, the majority of American renters have been continuing to make rent each month. What’s unclear is whether that will continue for the remainder of 2020, states the latest Yardi Matrix® National Multifamily Report.
“Collections have yet to decline a material amount, but if unemployed Americans are left without additional stimulus in the coming months, we could see a different story play out in the fall and winter months,” states the report.
Rent payments continue to be on par with last year, with 92.1% of apartment households making a full or partial rent payment by August 27, according to the National Multifamily Housing Council’s Rent Payment Tracker. This is down 1.9% from August 2019 and down 1.2% from July 2020.
Of the top 30 markets, year-over-year rent growth is negative in 16 markets. The three markets with the largest year-over-year rent declines remained unchanged from July: San Jose (-5.5%), San Francisco (-5.1%) and Boston (-2.5%). Lifestyle rents declined by 1.3% on a year-over-year basis in August, with 22 of the top 30 markets experiencing negative rent growth. On the other hand, the Renter-by-Necessity asset class is still holding strong, with only eight of the top 30 markets experiencing negative rent growth.
Dive deeper into the full July National Multifamily Report.
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