COVID-19 Multifamily Roundup (March 23-27, 2020)
March 27, 2020
Federal Reserve Bank of New York to Initiate Agency CMBS Purchases Starting Tomorrow
Mortgage Bankers Association | By Michael Tucker
“Purchases will be made across fixed-rate FNMA DUS pools, fixed-rate Freddie Mac K-series Deals and Ginnie Mae Project Loan pools. The details for each operation will be disclosed one day prior to the operation.”
Now is the Time to Prepare for the Future of Multifamily
GlobeSt.com | By Lisa Brown
“Protect rent rolls in order to capitalize when markets improve. Simply slashing rents won’t necessarily buy demand if that demand isn’t there.”
Prepare for April 1: Communicating with Residents Regarding Rent Flexibility and Rent Obligations
National Multifamily Housing Council
“NMHC has developed talking points that property owners and managers can use to help guide discussions or communications with residents who have been impacted, including a reminder to unaffected residents that their rent is still due.”
Severe Pandemic & Protracted Economic Slump Scenarios
Reis | By Victor Calanog, PhD
“In his latest video, Chief CRE Economist Victor Calanog, PhD provides insight into how we should think about and quantify the effect of a contraction in economic activity on various geographic markets in U.S. multifamily and commercial real estate.”
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March 26, 2020
Unemployment Benefit Claims Skyrocket to 3.283 Million
Yahoo Finance | By Heidi Chung
“The number of Americans filing for unemployment benefits skyrocketed to a record-breaking 3.283 million for the week ended March 21. The previous record was 695,000 claims filed the week ended October 2, 1982.”
Multifamily Investors Expect Modest Impact from Virus
Multi-Housing News | By Greg Isaacson
“Newly formed households continue their propensity to rent and with this high level of economic uncertainty, any newly formed households will most likely opt for the safety of renting.”
The Qualities That Imperil Urban Places During COVID-19 Are Also the Keys to Recovery
Brookings | By Tracy Hadden Loh, Hanna Love, Jennifer S. Vey
“Local responses to the pandemic are revealing that in the midst of mandated distancing, the economic, physical, social, and civic structures of communities significantly influence places’ ability to cope with the immediate crisis—and may be a strong predictor of their resilience and recovery in the months to come.”
Ten Best Practices for Pricing Apartments in a Downturn
RealPage | By Jay Parsons
“Pricing is one of many levers you can pull out of toolbox that also includes marketing, screening and workforce optimization. Not every problem is a problem price can solve.”
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March 25, 2020
Coronavirus Recession? What It Would Mean For Real Estate
Forbes | By Ingo Winzer
“More consumers will need (and want) to rent. Homeownership for young adults has been declining for decades, to around 35%. With incomes stalled, home prices high and more people with student debt living in expensive big cities, that trend will continue.”
Investors Turn to Safe Haven of U.S. Real Estate in Wake of the Coronavirus
National Real Estate Investor | By Doug Bryen
“Why has U.S. real estate remained relatively sheltered from these major global events over the course of history? It’s because real estate is a safe haven for investors during times of global volatility.”
NMHC’s Bibby Commends Move to Support Agency-Backed Apartments
Commercial Observer | By Keith Loria
“The announcement had a moratorium on evictions, but also contained a forbearance element that was beneficial to the owners and their financial relationships. This was a reinforcement of the guidance we were sending out to the industry.”
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March 24, 2020
Despite Coronavirus-Recession Concerns, Affordable Multifamily Investors Tout Their Resiliency
GlobeSt.com | By Mariah Brown
“The current economic landscape and public health crisis born from the coronavirus has spelled uncertainty for real estate investors across all asset classes, however, multifamily investors are strong in their belief that affordable housing will prevail.”
Apartment Industry Committed to Supporting Residents Impacted by COVID-19
National Multifamily Housing Council | By Colin Dunn
“The NMHC, on behalf the 40 million Americans who call an apartment home and the 17.5 million jobs the industry supports, recommends apartment firms consider adopting the following principles to help America’s renters retain their housing during this crisis.”
COVID-19: What’s the Long-Term Impact of Moratoriums on Apartment Evictions?
RealPage | By Jay Parsons
“As the economy sinks deeper into a recession, many delinquent renters will still be delinquent after COVID-19 tapers off. Policymakers would likely face pressure to extend eviction moratoriums – and the odds of that occurring appear to be rising by the day.”
FHFA Moves to Provide Eviction Suspension Relief for Renters in Multifamily Properties
Federal Housing Finance Agency (FHFA)
“FHFA is announcing that Fannie Mae and Freddie Mac will offer multifamily property owners mortgage forbearance with the condition that they suspend all evictions for renters unable to pay rent due to the impact of coronavirus.”
We’re Two Weeks In, What Should Multifamily Firms Do Now?
Multifamily Executive | By Kevin Donnelly
“Eight things to do now, if you haven’t already, to protect your residents, employees, and firms during the coronavirus outbreak.”
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March 23, 2020
Some Landlords Are Using Force Majeure for Space Build-Outs
GlobeSt.com | By Mariah Brown
“Stakeholders are asking whether force majeure clauses to contractual obligations may now apply, which is usually used after devastating natural events, such as a hurricane or a lightning strike.”
An Economic Update from NAHB’s Chief Economist
National Association of Home Builders | By Robert Dietz
“We are assuming an approximate eight-week mitigation period, followed by a decline in the growth rate of virus cases. This will enable portions of the U.S. economy to return to at least partial activity, slowing job losses and bringing some workers back to work.”
As Unemployment Surges, Where Does Multifamily Stand?
GlobeSt.com | By Mariah Brown
“If growth goes to zero in hospitality employment, while retail continues to suffer, and a very modest 5% cut occurs in the rest of the US employment sectors, demand growth expectations at a national level for multifamily could be cut by between 10% and 20%.”
You can find all of Arbor Chatter’s coronavirus coverage, including its ongoing COVID-19 Multifamily Roundup here. For a list of industry resources that offer helpful information related to the virus outbreak, please see our Coronavirus CRE Resource Guide.