The novel coronavirus has made a significant impact on the real estate industry. However, despite this ongoing outbreak, rents increased 3.2 percent in February on a year-over-year basis, matching the previous month‘s growth rate, according to a Yardi Matrix survey of 127 markets.
Phoenix once again led the group in terms of market performance, with a 7.6 percent increase in rent growth. Following that was Seattle with 5.5 percent and the Inland Empire at 5 percent. All primary markets besides Washington, D.C. (3.4 percent), fell below the national average last month. Secondary markets in the West continued to grow, but San Francisco and Los Angeles performed the slowest due to affordability issues and rent control.
The coronavirus has brought negative implications to the hotel, travel, trade and restaurant industries, but multifamily is still performing strong despite the obstacles. However, the sector may face challenges including short-term rent collection issues in a tightened employment market and the slow of development and value-add projects, according to the report.
“We expect the impacts of the coronavirus to last three to six months, before a steady recovery boosts the economy once again.”
To read the full report, visit the Yardi Matrix website.