Recent Economic Improvements Leave Multifamily Players Confident
Outside of the gateway and top 30 markets, Yardi Matrix reported a large pop in month-over-month rents in many secondary and tertiary markets in February. Lower-cost markets are outperforming, while expensive gateway markets that were the most locked down due to COVID-19 restrictions continue to struggle— although not at the rate we initially saw. A major factor in their ability to bounce back is the percentage of the workforce that remains remote once the pandemic subsides.
The work-from-home trend may create a tougher recovery for urban cores, but outlying suburban markets are benefiting from the shift. IMG’s target investment markets continue to boast YoY rent growth and draw remote workers due to the affordability of the rental market.
On March 11th, the American Rescue Plan Act of 2021 was signed into law. Key elements of the Act include $21.6 billion for rental assistance programs, extended expanded unemployment benefits and $1,400 direct payments to eligible individuals. After the passing of this $1.9 trillion economic stimulus bill, many economists are currently projecting close to 6% GDP growth for 2021.