How Hard Has the Pandemic Shaken Up Multifamily?

Paula Munger, AVP of Industry Research & Analysis, National Apartment Association. Image courtesy of NAA

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.

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“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.

Press play to hear more on what to expect in 2022 and beyond! And don’t forget to follow MHN’s podcasts on Apple Podcasts and Spotify.

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