Although a steady recovery is underway, the effects of last year’s shock are still visible in the multifamily industry. Owners and operators are struggling with escalating expenses and decreases in net operating incomes, but other challenges are equally pressing. Finding qualified workers is difficult, particularly for smaller multifamily owners who need more time to start being profitable again.
The National Apartment Association conducted a survey that revealed just how hard the industry was hit across most income and expense categories. More than 3,200 properties containing almost 830,000 units were represented in this year’s report, which covered financials from 2020.
READ ALSO: Top 3 Challenges for the Rental Industry
“On a year-over-year basis, we had the first decrease in net operating income since 2010, so that was right in the aftermath of the Great Recession. And when we look at it as a percent of gross potential rent, we’re at 58.8 percent. It’s been trending above 60 percent for about five years and now that is at the lowest level since 2012,” NAA Associate Vice President of Industry Research & Analysis Paula Munger told Multi-Housing News Senior Editor Laura Calugar during the latest podcast in our series.