According to Yardi Matrix’s April 2021 bulletin, “roughly one out of every 14 multifamily properties in the US has seen occupancy rates drop by 5% or more over the last 12 months.” 7.3% of multifamily properties experienced a 5% or more decrease in occupancy, and 1.8% experienced a 10% or more drop in the last 12 months.
Understandably, occupancy in large urban areas was impacted the most. Leading the pack was New York City where 32.6% of properties experienced a 5% or more decrease in occupancy and 9.8% experienced a 10% or more decrease in occupancy.
Nationally, multifamily occupancy is down 0.2% year-over-year. Since many of the large urban metros aren’t expected to return to pre-pandemic occupancy levels for five or more years, Yardi Matrix predicts that the national occupancy rate will not recover until Q2 of 2024.
Now for the good news.
National rents have already recovered. National rents are now 0.6% greater than pre-pandemic rents. Also, 14 metros have occupancy levels and rents above pre-pandemic levels – either because they’ve fully recovered or weren’t impacted enough by the pandemic. Here are those markets:
Click here to review the full bulletin from Yardi Matrix to see if the market you invest in has fully recovered from the COVID-19 recession.
Disclaimer: The views and opinions expressed in this blog post are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action.