Lease Pricing Rebounded to Pre-Pandemic Levels in February, but Concessions Remained at Historic Highs

Latest Report from MRI Software Tracks Effects of COVID-19 on Market-Rate Housing Throughout the U.S.

Solon, Ohio – March 11, 2021 – New lease pricing finally reached the prior year’s levels in February, but concession values remained at historic highs for the second consecutive month, according to the latest report from Proptech firm MRI Software (“MRI”). The newest findings show February values as double those of February 2020, extending the year-over-year (YOY) trend identified in January.

MRI’s newest report compiles data from more than one million market-rate units (a subset of the total units managed by MRI clients) between February 2020 and February 2021. Analysis includes both YOY and month-over-month comparisons.

Additional highlights:

• Move-in volumes outpaced move-outs, continuing a trend that dates back to July.
• Renewal rates are at or above prior year for a third consecutive month.
• Rates of month-to-month leases also exceeded those of the prior year for a third consecutive month.
• Traffic dropped significantly below prior year volumes while application volumes reached a near YOY low.

“I am encouraged by the increase in lease pricing, despite the high concession volumes,” says Brian Zrimsek, Industry Principal, MRI Software. “This jump is notable, given the ongoing uncertainties about vaccination rates and stimulus packages. Of course, those same uncertainties are driving the popularity of month-to-month leases and prompting residents to stay in place.”

He adds: “I am not concerned about the relatively low rates of traffic and applications shown by the February data. Those can be primarily explained by the storms that affected many areas of the U.S. – plus, February is a shorter month.”

“It’s refreshing to identify a trend that has nothing to do with the pandemic,” he concludes. “As we near the one-year anniversary of COVID-19 lockdowns in the U.S., I look forward to the not-too-distant future, when market headwinds will be easier to anticipate and navigate.”

About MRI Software
MRI Software is a leading provider of real estate software solutions that transform the way communities live, work and play. MRI’s comprehensive, flexible, open and connected platform empowers owners, operators and occupiers in commercial and residential property organizations to innovate in rapidly changing markets. MRI has been a trailblazer in the PropTech industry for over five decades, serving more than two million users worldwide. Through leading solutions and a rich partner ecosystem, MRI gives real estate companies the freedom to elevate their business and gain a competitive edge. For more information, please visit mrisoftware.com.

MEDIA CONTACTS:

(U.S. for MRI)
Rachel Antman (+1 212-362-5837)
rachel@saygency.com

(U.K.) Platform Communications for MRI
Zoe Mumba (+44 7725 832393)
or Hugh Filman (+44 7905 044850)
mri@platformcomms.com