The 90-day rent freeze helps most renters secure housing amid the coronavirus pandemic
The majority of US apartment households continued to pay at least some of their rent in June despite more than half of renters hard-hit by COVID-19 still struggle to make ends meet, according to The National Multifamily Housing Council (NMHC).
In NMHC's survey of 11.5 million apartment units nationwide, 80.8% of apartment households had made full or partial rent payment by June 6, compared to the 80.2% that had paid by May 6.
However, even with substantial collections, rents continued to fall as massive unemployment across the country drove some renters to either downgrade to more affordable apartments or move back in with their parents. Month-over-month rent growth dropped by 0.3% during what would typically be the middle of prime leasing season, according to the Yardi Matrix report.
"These are trying times for the country, and we are reminded on a regular basis how crucial safe and secure housing is during a period of uncertainty and upheaval, so we are glad to see that residents who live in professionally managed properties continue to pay their rent," NMHC President Doug Bibby said. "While our Rent Payment Tracker metric continues to show the resilience and strength of the professionally managed apartment industry, it does not necessarily tell the whole story, as it doesn't capture rent payments for smaller landlords or for affordable and subsidized properties, and according to Harvard, more than half of renters with at-risk wages due to the pandemic live in single-family and small multifamily rentals with two to four units."
According to Yardi, metros with the highest share of 'durable jobs' or those in the government, finance, and professional and technical services are typically home to government capitals, state universities, and knowledge-based industries. Lansing, Mich. (44%) topped the list, followed by Washington, D.C. (41.8%), and Sacramento (34.5%).
Meanwhile, Las Vegas (19.8%), Milwaukee (20.5%), and Memphis (20.6%) are the metros with the lowest share of durable jobs.
"At the beginning of the outbreak lawmakers took swift action to extend and enhance unemployment benefits as well as create other programs aimed at keeping individuals employed. Thanks to those forward-looking steps, millions of Americans have been able to continue to be able to afford healthcare, food and shelter," said NMHC chairman David Schwartz. "However, those benefits will expire on July 31. Unless policymakers move to extend them, the families and individuals relying on them will find themselves without a safety net, undercutting the initial economic recovery. We urge lawmakers in both parties to continue to sustain and support Americans as our nation and the economy begin to recover."
