For ApartmentGuide, I wrote an article outlining the implications of the pandemic on the rental market. A recent market update report by the UBS Wealth Management Chief Investment Office suggests the resilience we’ve seen in the sector will continue. While the virus will have a major impact, it will be felt disproportionality across apartment classes. I explore some major forces:
- Stimulus payments are helping renters, but more tenants are expected to struggle with rent payments in the short term.
- Class-A apartments will fare better due to the career distribution of the tenants. Class-C apartments tend to house workers in service-oriented industries, where activity is most heavily restricted.