Latest Report from MRI Software Tracks Effects of COVID-19 On Market-Rate Housing Throughout the U.S.
Solon, Ohio – October 14, 2020 – Some facets of multifamily leasing stabilized in September while others reflected continued impact from the COVID-19 pandemic, according to the latest report from Proptech firm MRI Software (“MRI”). Notable metrics include a new peak in concession volume, a rebound in move-in volume, and lower lease pricing compared to September 2019.
The firm’s newest report compiles data from more than one million market-rate units (a subset of the total units managed by MRI clients) in January-September 2020 and January-September 2019. Analysis includes both year-over-year and month-over-month comparisons.
- Move-in volume was only 3% off that of September 2019, after lagging 2019 by approximately 20% since March.
- Concession volume reached a new high of 21% while the average concession value increased by 13% year-over-year.
- Lease pricing was 3% lower than that of September 2019.
- Traffic exceeds prior year volume.
- Many tenants continue to rely on cards for rent. Card payments have increased by 60% compared to January of this year.
“The rise in move-in volume was a pleasant surprise,” says Brian Zrimsek, Industry Principal, MRI Software. “It indicates potential stabilization in the market. As for the concessions, high volume and value concern me, especially when coupled with lower base rent pricing.”
Zrimsek continues to keep a close eye on card usage by renters, which could indicate either problems with cash flow or, less worryingly, attempts to accrue points.
“Developments in the coming months, such as the election results, negotiations surrounding stimulus packages, and unemployment rates, will affect the multifamily industry at a time when companies are planning next year’s budgets,” Zrimsek observes. “We hope our reports will help them better navigate the uncertainties.”
About MRI Software
MRI Software is a leading provider of innovative real estate software applications and hosted solutions. MRI’s comprehensive and flexible technology platform coupled with an open and connected ecosystem meets the unique needs of real estate businesses – from property-level management and accounting to investment modeling and analytics for the global commercial and residential markets. A pioneer of the real estate software industry, MRI develops lasting client relationships based on nearly five decades of expertise and insight. Through leading solutions and a rich partner ecosystem, MRI gives organizations the freedom to transform the way communities live, work and play while elevating their business and gaining a competitive edge. For more information, please visit mrisoftware.com.
(U.S. for MRI)
Rachel Antman (+1 212-362-5837)
(U.K.) Platform Communications for MRI
PJ Chou (+44 20 3219 5837)
Zoe Mumba (+44 7725 832393)
or Hugh Filman (+44 7905 044850)