Multifamily: Coronavirus Affecting Rent Collection, Plan Reviews

Filed in Economics, Multifamily by on April 15, 2020 0 Comments

An online survey conducted by NAHB between April 3 and April 9 reveals that 90% of multifamily developers said the coronavirus has had an adverse effect on how long it takes to obtain a plan review for a typical multifamily building, and 88% said it has had an adverse effect on timely collection of rent payments.

The poll collected 49 responses from members of NAHB’s Multifamily Council, NAHB’s Affordable Housing Group and NAHB’s Multifamily Leadership Board.

The poll listed nine aspects of a multifamily developer’s business and asked if the coronavirus has so far had a major, minor or no adverse effect on each.

As the chart below shows, after plan review and rent collection, the most widespread problems are:

  • Supply of n95 respirator face masks (86% of multifamily developers);
  • Traffic of prospective buyers/renters (85%); and
  • Costs related to renters’ health and safety (82%).

Delving deeper on rent collection, NAHB’s multifamily poll shows that 96% of multifamily developers reported that some portion of their tenants missed their last rent payment. The most common response (from 39% of developers) was that between 1% and 10% of tenants missed their last payment, but 18% said the missed-rent share was more than 30% percent. On average, 18% of tenants missed their last payment.

NAHB Senior Economist Paul Emrath provides more details in this Eye on Housing blog post.

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