The Q1 2021 Single-Family Rental Investment Trends Report explores SFR market fundamentals and performance metrics to start off the year. Read the full report for exclusive research, trends and insights on the SFR space.
The U.S. multifamily market overall posted rent declines during the first quarter of 2021, as the economy continued to feel the effects of the COVID-19 pandemic. However, bright spots were to be found.
Through first-quarter 2021, smaller metros experienced more cap rate compression for small multifamily properties than larger gateway markets. This trend reflects the migration patterns seen in most of 2020, as many households looked to move out of more urban areas.
The Q1 2021 Small Multifamily Investment Trends Report reveals small multifamily prices rose 2.3% quarter over quarter and 5.5% year over year as the sector begins to show signs of a return to normal. Read the full report for exclusive research and commentary.
The unemployment rate fell to 6.0% in March 2021 as the U.S. labor market added back more than 900,000 jobs and small businesses led the recovery.
Memphis posted the highest multifamily rent growth in the U.S. during 2020, rising 3.8%. Vacancy rates were lower than the national average, as demand outpaced the addition of new supply. Investment activity remained high and cap rates fell to historical lows, as the local economy showed signs of recovery.
Multifamily rent growth in Memphis was the highest in the nation during 2020, driven by strong demand for workforce housing, as the area remained attractive to investors.
Multifamily investors looking to finance the acquisition, refinancing or repositioning of their property have a variety of loan sources to choose from. See the top reasons why agency loans, which include financing products from the Government-Sponsored Enterprises (GSEs) Fannie Mae and Freddie Mac, remain a top choice for many investors.
The coronavirus has sent shock waves through the global economy. With uncertainty rising, investors have quickly piled into safe-haven assets, sending bond yields to new depths. Multifamily will also see its turbulence, but it is well positioned to weather the storm.
RealPage presented a webcast on Covid-19 and apartment demand. Economists provided advice on retaining tenants, while forecasting the pandemic’s future effects on the economy.
Older renters are increasingly becoming a significant driver of urban multifamily demand. Walkability, convenience and access to a variety of services attract aging Americans to certain cities.
While Gen Z is emerging as a source of multifamily demand, millennial renters still dominate the apartment market across a variety of metros.
Boston’s strong labor market and new lifestyle amenities are translating into greater success for the metro’s small multifamily sector.
More single-family rental households are turning to newly constructed build-to-rent properties, and recent data points to room for continued growth.