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Multifamily Capital Markets Update (June 2020)

The 10-year Treasury Yield has remained stable keeping in a range of around .75%.  Debt capital is available from the agencies but with reserves.  Equity capital continues to be selective.

Below are key takeaways from the following reports:

National Multifamily Report - May 2020 – Yardi Matrix Link

Download the PDF version of this report here:

National Multifamily Report - May 2020

Yardi Matrix

  • Gateway cities that have been the slowest to open are seeing negative rent growth
  • “A” properties in larger cities have declined the most
  • Discounts have been given for amenities that are shut down due to Covid-19
  • Smaller cities and “B” type properties have fared better than larger cities and “A” properties
  • Occupancies are stable with higher lease renewals and less turnover
  • Collections continue to be strong with the stimulus in full gear
  • Short term rentals and corporate leases are struggling
  • Markets reliant on tourism (Orlando, Las Vegas) will suffer rental declines in the next year
  • “B” and “C” properties could have potential collection problems if congress declines any more stimulus bills
  • Cities with a higher concentration of government, finance and professional jobs will hold stable (Washington DC, Sacramento, Austin, Columbus)
  • Given the lower turnover this spring/summer, fall could be the new leasing season