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Multifamily Capital Markets Update (December 2020)

The 10-year Treasury Yield has increased slightly in a range of around .80% -.95%. Debt capital is available from the agencies but with reserves. Agency business is busy with year-end around the corner.

Below are key takeaways from the following reports:

National Multifamily Report – November 2020 – Yardi Matrix Link

Download the PDF version of this report here:

National Multifamily Report - November 2020

Yardi Matrix

  • Rents declined nationwide by .5% year over year
  • The national rent decline is attributed to larger gateway cities like New York, Boston, San Francisco that have some of the highest rents in the country
  • Many smaller lower-cost markets have seen year over year increases such as Phoenix, Indianapolis and Sacramento
  • SFR has enjoyed explosive growth as many renters look for larger spaces
  • Markets with an abundance of new supply are having trouble leasing up at this particular time. The issue will persist until the pandemic is over.
  • Employment trends vary market to market depending on the reliance on hospitality and leisure as a % of employment (restaurants, hotels, entertainment)
  • Markets like Austin have seen rents decline as the lower end and workforce units struggle and have more than offset the higher-end sector
  • Las Vegas with the highest unemployment rate in the country sees some of the larger rent growths in the US
  • Las Vegas, Inland Empire, Phoenix, Sacramento rent increases are as a result of net migration from higher-cost coastal cities like San Francisco and Los Angeles