Multifamily Real Estate Markets Update (April 2020)

The multifamily industry has seen some minor effects of the COVID-19 pandemic, but the performance was better than expected after rent collections. Class C properties will be hit the hardest, as well as those markets that are travel and tourism-dependent.

Below are key takeaways from the following reports:

Through Week 2 in April, Apartment Rent Payments Register Above Expectations – RealPage Link

Matrix National Multifamily Report – February 2020 – Yardi MatrixLink

Download the PDF version of this report here:

Through Week 2 in April, Apartment Rent Payments Register Above Expectations


  • Through April 12, 84% of apartment households made a rent payment
    • Compared to this time last year, collections are down only 6 percentage points
    • Initial reporting showed that only two-thirds of apartment renters paid rent through April 5th
      • This is partially due to April 5th falling on a Sunday, so rent payments we’re not processed until the 6th or 7th
  • Collections are the weakest in Class C properties, with only 79.7% of renters making payments as of April 12
      • These renters are those most exposed to layoffs in the hospitality, retail and restaurant sectors
      • By comparison, 84.1% of Class B renters and 84.8% of Class A renters made payments
  • Online rent payments are trending upwards as renters and property managers try to avoid in-person contact
    • As of April 12, 61% of payments were made electronically, compared to 51% this time last year

Matrix National Multifamily Report – February 2020

Yardi Matrix

  • Coronavirus will likely cause a recession
    • Due to the spread of COVID-19, we have seen the end of an 11-year bull market
      • Travel ban against all European citizens entering the U.S.
      • Treasury rates to historic lows
    • Travel, hotel, restaurant and trade industries will likely be hurt the worst
      • Business and leisure travel has drastically slowed
    • The multifamily industry will suffer from rent collection issues
  • Rents increased 3.2% in February which matches January’s growth rate
    • Phoenix led all major markets with 7.6% growth, followed by Seattle’s growth of 5.5%
    • Washington, D.C. is the only primary market that did not fall below the national average for rent growth
    • Western markets are continuing to grow strongly, although San Francisco and Los Angeles are slowing due to increased rent control