Beyond the Health Crisis: National Multifamily Outlook
Third Quarter 2020
Government Stimulus Softened the Blow From the Pandemic, But True Impact of the Health Crisis May Come If Support Subsides
Multifamily rent collections exceed expectations. Jobless claims were filed at a record pace in the second quarter and continued to come in at an elevated rate through July, posing a threat to the multifamily sector. Typically, jobless renters struggle to pay rent, but the $600 per week federal unemployment supplement mitigated the impact on rent collections. For some workers, the expanded benefits surpassed their previous paychecks, which helped many of the jobless meet obligations. However, the $600 per week federal supplement expired at the end of July and while Congress has been working on an extension, a recent executive order has obfuscated the process. In an environment with lower federal benefits, collections may begin to erode.