NAA Reports on COVID-19 Economic and Industry Impact
On February 3, 2021 the National Apartment Association posted a 12-slide presentation that provides a great, concise look at how the pandemic has impacted the economy and the apartment industry. Here's a link to the presentation, and here are a couple of highlights:
- As of December, repayment agreements have surged 887% since 2019.
- Occupancy rates remained steady at 94% through December 2020, unchanged compared to December 2019.
- Renewals have dropped to 48%, a decline of 12% year-over-year.
- Month-to-month leases were up just 1% since the beginning of the pandemic.
- Gross Domestic Product (GDP) for 2020 posted a 3.5% decline, the worst performance for the US economy since the data series began in the late 1940s.
- At 1.2 million, single-family permits hit their highest level since August 2006.
- Multifamily permitting activity was down on both a monthly and annual basis, but remains in line with 2017 and 2018 averages.