Report comparing Feb-April 2020 with Feb-April 2019 uncovers notable trends in leasing, operations, and renter behavior
The COVID-19 crisis has prompted substantial changes to leasing activity, operations, and renter behavior within the U.S. multifamily market, according to a new report fromMRI Software (“MRI”), a global leader in real estate software solutions.
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The report, which compares data from more than one million active units (a subset of the total units managed by MRI clients) in February-April 2020 and February-April 2019, illuminates significant effects of the crisis, such as reductions in demand and pricing and a rise in concessions.
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Key findings, which will be discussed in a webinar at 2 p.m. EDT today, include:
- Less demand, less turnover: a 4% increase in renewals and a 15% reduction in vacancy rates between March 15-April 31, 2020 compared to the same period in 2019. Furthermore, new rental applications decreased 29% from March 22 to April 19, 2020, before improving but remaining 11% below prior year levels at the end of April.
- Lower prices: pricing for new 12-month leases decreased 2% in April 2020 compared to the previous month, while landlord concession volume increased by 53% year over year.
- Longer leases: A 3% increase in 12-month leases in April 2020 compared to April 2019.
- A shift to online payments: A 12% increase in electronic payment volume in April 2020 compared to February 2020.
- Fewer service requests: A 56% decrease in resident service requests in April 2020 compared to the prior rolling 12-month average.
MRI’s Market Insights team is also collaborating with the National Multifamily Housing Council on its Rent Payment Tracker. The most recent report showed a decrease of less than 2% in the rental payment rate during May 1-6, 2020 compared to May 1-6, 2019.
