Rent Collections in May Stayed Strong Despite Unemployment I
SANTA BARBARA, California, June 10, 2020 /PRNewswire/ -- May rent growth continued its downward trend as many states began to open non-essential businesses. During what would typically be the middle of prime leasing season, rents declined nationally by 0.3% on a month-over-month basis, according to the latest Yardi Matrix® report.
May rent collections continued to be strong according to the National Multifamily Housing Council's Payment Tracker reporting. But even with healthy collections, rents continue to decline, particularly for the "lifestyle" asset class, likely due to some renters downgrading to more affordable apartments or moving in with family or friends.
The steepest declines in monthly average rents were seen in major gateway markets that were among the first to impose strict lockdowns. Smaller markets are not immune and have seen substantial rent declines as well. Dive deeper into the full May National Multifamily Report.
Yardi Matrix researchers also examined the top 50 metros in total employment to determine which have the most durable employment sectors. The report defines the three "durable employment sectors" as jobs in government, finance, and professional and technical services.
Metros with the highest percentage of durable jobs are typically home to government capitals, state universities and/or knowledge-based industries. Leading the list nationally are Lansing, Mich. (44.0%), Washington, D.C. (41.8%) and Sacramento (34.5%), all of which include federal or state government capitals.
Markets at the bottom of the list for durable employment sectors include Las Vegas (19.8%), Milwaukee (20.5%) and Memphis (20.6%).
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