Since the start of COVID-19, we have been tracking the resiliency of multifamily real estate. Current housing supply is still low, and paired with a sharp increase in moves to lower-density areas and low-interest rates, investors have continued to invest in multifamily homes.

While real estate demand in cities like New York and San Francisco have seen declines in both the number of transactions and in rental rates, CREXi reports that markets where the population is under 2MM people are growing by 4%+ due to low supply, high demand. We continue to see low vacancy rates for top suburban markets in Texas, for example.

High unemployment across the US and the uncertainty of around COVID infection rates through fall/winter 2020 hold a certain element of risk, but that doesn’t mean there are no opportunities. While performing due diligence on rents, occupancy indicators, and on-time payments during COVID, smart investors are taking notice of markets that are still outperforming national averages. Choosing a property in a well-positioned market with a diverse economy, working with seasoned property managers, and keeping well-informed of government assistance packages, will continue to be the key to maintaining the success of multifamily portfolios during this pandemic.