11 Dec Multifamily 2020 – How The Market Changed And What To Expect In 2021
2020 has been a year of change and upheaval for multifamily investors due to issues like Covid-19, lockdowns, social unrest and economic uncertainty nationwide.
As we approach 2021, now is the perfect time to look back on how the multifamily market fared in 2020, and analyze what we can expect from the coming year.
What Happened With Multifamily In 2020?
Everyone who watches the nightly news knows that Covid-19 is one of the biggest topics of conversation, especially when it comes to renters. The Pandemic led to the beginning of nationwide lockdowns that started in March, and many are still active until January 2021.
Aside from the hype regarding Covid-19, the reality for multifamily is that despite the lockdowns, recent data from Freddie Mac has shown that rent growth remained healthy in 2020, growing at 3.6%.
RealPage and Yardi also showed similar rent growth as well, so it’s looking like rent growth this year isn’t as bad as many thought it might be.
Some of the things that have certainly helped rent growth nationwide were the economic stimulus payments, and other state/local/federal programs, which many renters have been able to use to cover their rent payments.
Multifamily supply also remained robust in 2020 but, unless the eviction crisis is stopped at the Federal level, we can expect supply to outpace absorptions throughout much of 2020.
Things To Look Forward To In 2021
As we move forward to 2021, the work from home trend will likely continue unless some cities come up with taxes or other penalties that discourage people from working from home.
To embrace the work from home culture, it’s likely that more multifamily properties will embrace a wide variety of amenities to attract work from home tenants including:
- Improved data wiring in units
- Free High-speed internet
- On-site conference rooms or copy centers
- Smart storage lockers for packages deliveries
More multifamily properties will also embrace online services like Zego and Docusign so that tenants can self-tour units, sign leases, and pay online without having to interact with building management.
Contact MW Real Estate Group
At MW Real Estate Group, we specialize in sourcing, acquiring, and managing multifamily properties in Los Angeles, CA.
If you own apartments, or other multifamily properties in LA that you need management for, or you would like to learn more about our services, contact us today at (213) 927-2117 or click here to connect with us online.