Multifamily rents drop as pandemic impact persists
Article originally posted on AZBigMedia on January 19, 2021
2020 will go down as the year COVID-19 changed everything. As the pandemic became rampant, many initially feared that multifamily rents would rapidly decline. But many metros have emerged from 2020 unscathed, and some have even enjoyed significant rent growth. Others have not been so lucky, especially expensive coastal markets, according to the latest multifamily report from Yard®Matrxi.
The sector ended the year on a low note. Multifamily rents declined by 0.8% in December on a year-over-year basis, a 30-basis-point decline from November. Overall rents declined by $4 to $1,462, the largest one-month decline since the beginning of the pandemic, when overall rents dropped by $5 in April.
The differing impact gap on gateway markets and lower-cost metros continues to widen. California’s Inland Empire (7.3% year-over-year rent growth) and Sacramento (6.1%) top the list, where they have been for the last four months. San Jose (-13.7%) and New York (-11.7%) fall at the bottom of the list. Tech stalwart San Jose, with its remote-friendly job base, has been at the bottom of the list for seven consecutive months. The metro’s overall rents have fallen by 14.1% since March 2020.