NMHC Rent Payment Tracker Finds 86.2 Percent of Apartment Households Paid Rent as of September 13
The National Multifamily Housing Council (NMHC) recently reported that 86.2% percent of apartment households made a full or partial rent payment by September 13. This is part of its survey of 11.4 million professionally managed multifamily properties in the US. Compared to September 13, 2019, this new survey is a 2.4% decrease, or 297,457 households. Additionally, this is a slight decrease from the collection rate on August 13, 2020 of 86.9%.“While it remains clear that many apartment residents continue to prioritize their housing obligations and that apartment owners and operators remain committed to meeting them halfway with creative and nuanced approaches, the reality is that the second week of September figures shows ongoing deterioration of rent payment figures – representing hundreds of thousands of households who are increasingly at risk,” said Doug Bibby, NMHC President.
Multifamily’s Resilience Is Attracting Investors
With the US economy beginning to experience a recovery in Q3 2020, many institutional investors have increased their appetite for real estate, particularly in multifamily properties. This comes as the office and retail sector continue to struggle. Multifamily properties are catering to the human need of shelter and US government helped the sector in the beginning of the pandemic. “Institutional investors, I think they’re seeing how resilient the asset class is,” Nuveen Managing Director Nikita Rao said during Bisnow’s BMAC South summit Sept. 15. “When you look over the past 35 years, the average income return from multifamily was 6.6%, and even during the [Global Financial Crisis], that income return was 4.4%.”