May rent growth continued its downward trend as many states began to open non-essential businesses.
During what would typically be the middle of prime leasing season, rents declined nationally by 0.3% on a month-over-month basis, according to the latest Yardi Matrix® report.
May rent collections continued to be strong according to the National Multifamily Housing Council’s Payment Trackerreporting. But even with healthy collections, rents continue to decline, particularly for the “lifestyle” asset class, likely due to some renters downgrading to more affordable apartments or moving in with family or friends.
The steepest declines in monthly average rents were seen in major gateway markets that were among the first to impose strict lockdowns. Smaller markets are not immune and have seen substantial rent declines as well. Dive deeper into the full May National Multifamily Report.
Yardi Matrix researchers also examined the top 50 metros in total employment to determine which have the most durable employment sectors. The report defines the three “durable employment sectors” as jobs in government, finance, and professional and technical services.
Metros with the highest percentage of durable jobs are typically home to government capitals, state universities and/or knowledge-based industries. Leading the list nationally are Lansing, Mich. (44.0%), Washington, D.C. (41.8%) and Sacramento (34.5%), all of which include federal or state government capitals.
Markets at the bottom of the list for durable employment sectors include Las Vegas (19.8%), Milwaukee (20.5%) and Memphis (20.6%).
About Yardi Matrix
Yardi® Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types.
Yardi® develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide.
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