Limon Net Lease Group

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Eviction Moratorium Report | August 2021

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Eviction Pressures Abating as Economy, Labor Market Continue to Improve

  • Rising infections prompt moratorium extension. On Aug. 3 the Centers for Disease Control and Prevention enacted a new order halting residential evictions in counties with substantial or high levels of COVID-19 community transmission.
  • Federal aid and job growth lower eviction pressure. Contrary to initial expectations, rent collections have held up fairly well during the health crisis.
  • Multifamily sector performing well. Rental demand has already recovered substantially from last year, with a record number of apartments absorbed in the second quarter.

Additional Factors:

  • Court backlog may provide time for aid to arrive. Congress has allocated close to $47 billion in rental assistance, with $25 billion released so far, but the rollout has been slow.
  • Estimates of renter hardship likely skewed by statistical issues. Some higher-end estimates of rent delinquency have come from the Household Pulse Survey, a recent experimental dataset.

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Investor Sentiment Survey Results | 2021 Second Half

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New Investor Sentiment Survey Results for 2H 2021:

Strong Sentiment Points to Positive CRE Outlook

  • Investor sentiment remained stable at 165, in-line with pre-pandemic levels; above 140 from this time last year
  • About 74% of respondents say their properties are performing at or better than pre-COVID levels
  • Half of respondents plan to increase their CRE holdings as values are expect to rise for all property types

Economic Recovery Expected to Drive CRE Appreciation

  • Seniors Housing expected to see largest YOY gain at 7.5% due to a post-pandemic occupancy recovery
  • Industrial benefited from rise in eCommerce and “Just In Case” inventory; investors anticipate 7.4% price growth
  • Apartments, Self-storage, and Hotels also expect strong gains; driven by rent growth and economic recovery

Potential Headwinds Could Reshape CRE Landscape

  • Changes to tax law, rising interest rates and elimination of 1031 Exchanges remain top investor concerns
  • Despite elevated uncertainty, investor sentiment remains higher than 4 out of the last 5 years

As of 2H 2021
Base: All respondents; bases vary by property type currently invested in.
Sources: Marcus & Millichap Research Services, M&M/WMRE Investor Survey

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5 Things Every Multifamily Investor Needs to Consider This Year; Economic and Apartment Market Update and Outlook – 06.16.21

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The current multifamily investment climate is highly dynamic.

The ongoing economic recovery, potential public policy changes and COVID-driven behavior shifts create a unique outlook that every investor should be tracking for the rest of 2021.

Key Features Include:

  • Economic update and outlook
  • Behavior changes and impact
  • Key tax reform proposals and implications for multifamily
  • Apartment fundamentals and investment sales trends

Download the Full Report Here