An Analysis by Victor Calanog, PhD
HOLDING RELATIVELY STEADY, THOUGH CRACKS ARE APPEARING
Multifamily property fundamentals were remarkably stable over the course of the second quarter, with national vacancies unchanged at a relatively tight 4.8%. However, effective rents at the national level declined by 0.4% – the first such decline on record since the sector began its recovery arc after the ’08-’09 recession. For some markets, the magnitude of distress is much more palpable.
In the midst of a global pandemic, in what is widely forecasted to be the worst year for GDP declines since the Great Depression, it is actually impressive that apartment fundamentals have held steady. There are many things that render this recession unique, however, that contribute to such stability…
Victor Calanog, PhD CRE® is the Head of Commercial Real Estate Economics at Moody’s Analytics REIS. He and his team of economists and analysts are responsible for the firm’s market forecasting, valuation, and real estate portfolio analytics services. He holds a PhD in Applied Economics and Management Science, trained by a dissertation committee composed of faculty from the Wharton School of the University of Pennsylvania and Harvard Business School.