January 25, 2021
The Multifamily Firm team pulled the latest multifamily real estate data and unemployment statistics for 2019 / 2020 in order to give perspective to the current state of the market and where it is heading.
The theme of 2020 is rather redundant at this point, as the tragic pandemic took hold and created unforeseen turbulence in economic markets around the world. The full effect of its presence remains to be seen in many ways; however, the immediate impact is evident in the statistics below. There weren’t any multifamily markets that were untouched, as sales dropped year-over-year by as much as 45% – 70% and beyond for some specific markets.
“Despite the pause of transactions caused by the pandemic shutdowns, the Florida Multifamily market appears to have bounced back even stronger than the period prior! In many ways this is the golden age of Multifamily in Florida, as interest rates remain at historic lows and investors continue to search for stable yield outside of the stock. Furthermore, the pandemic has ignited a surge in migration to Florida, mostly from more densely populated regions in the US, which has substantially helped support the rental market.The main concern we heard from owners and investors during the peak of the pandemic was whether the rental market would hold up and essentially if tenants would be able to pay rent. Despite the shutdown months back in March/April, rent collections remained solid (90% or higher) for the months following and far exceeded what was expected at the time!It’s as if the Florida Multifamily market was tested on its resiliency and it passed beautifully! The time period we’re seeing now is investors realizing that resiliency, which is now causing even higher demand in the segment!” – Phil Ginexi, Managing Director & Co-Founder of The Multifamily Firm
The multifamily real estate statistics below have been broken down by region, metro size, top metros, and unemployment rates in the top metropolitan areas nationwide.
Multifamily Transactions by Region: 2019 vs 2020
National
2019: $127,762M
2020: $50,603M
% Change Year-Over-Year: -41.6%
Southeast
2019: $44,750M
2020: $20,532M
% Change Year-Over-Year: -34.1%
Northeast
2019: $13,340M
2020: $3,898M
% Change Year-Over-Year: -34.1%
Midwest
2019: $9,278M
2020: $4,221M
% Change Year-Over-Year: -32.6%
West
2019: $34,900M
2020: $11,099M
% Change Year-Over-Year: -51%
Southwest
2019: $25,495M
2020: $10,853M
% Change Year-Over-Year: -39.7%
Multifamily Transactions by Metro Size: 2019 vs 2020
National
2019: $127,762M
2020: $50,603M
% Change Year-Over-Year: -41.6%
Southeast
2019: $44,750M
2020: $20,532M
% Change Year-Over-Year: -34.1%
Gateway
2019: $26,030M
2020: $28,166M
% Change Year-Over-Year: -44.5%
Secondary
2019: $74,030M
2020: $28,166M
% Change Year-Over-Year: -44.5%
Tertiary
2019: $27,055M
2020: $13,140M
% Change Year-Over-Year: -29.2%
Multifamily Transactions by Urban / Metro: 2019 vs 2020
Urban
2019: $75,553M
2020: $29,735M
% Change Year-Over-Year: -41%
Suburban
2019: $52,187M
2020: $20,708M
% Change Year-Over-Year: -42.8%
Multifamily Transactions Top-10 Metros: 2019 vs 2020
National
2019: $127,762M
2020: $50,603M
% Change Year-Over-Year: -41.6%
1) New York
2019: $3,265M
2020: $936M
% Change Year-Over-Year: -51%
2) Los Angeles
2019: $4,924M
2020: $1,172M
% Change Year-Over-Year: -65.8%
3) Chicago
2019: $2,787M
2020: $783M
% Change Year-Over-Year: -49.5%
4) Dallas
2019: $6,321M
2020: $2,591M
% Change Year-Over-Year: -40.7%
5) Houston
2019: $4,844M
2020: $1,683M
% Change Year-Over-Year: -48.4%
6) Washington DC
2019: $6,295M
2020: $3,502M
% Change Year-Over-Year: -15%
7) Miami
2019: $2,838M
2020: $1,267M
% Change Year-Over-Year: -43.5%
8) Philadelphia
2019: $1,707M
2020: $339M
% Change Year-Over-Year: -74.9%
9) Atlanta
2019: $7,767M
2020: $2,805M
% Change Year-Over-Year: -48.3%
10) Phoenix
2019: $7,323M
2020: $2,788M
% Change Year-Over-Year: -50.6%
Multifamily Employment Top-10 Metros: February 2020 vs September 2020
National
Unemployment Rate (Sep 2020): 7.9%
1) New York
Feb 2020: 7,310,300
Sept 2020: 6,423,800
% Change: -12.1%
2) Los Angeles
Feb 2020: 4,632,600
Sept 2020: 4,139,600
% Change: -10.6%
3) Chicago
Feb 2020: 4,779,100
Sept 2020: 4,427,900
% Change: -7.3%
4) Dallas
Feb 2020: 2,747,100
Sept 2020: 2,637,100
% Change: -4%
5) Houston
Feb 2020: 3,220,600
Sept 2020: 3,003,200
% Change: -6.8%
6) Washington DC
Feb 2020: 3,393,900
Sept 2020: 3,163,700
% Change: -6.8%
7) Miami
Feb 2020: 1,222,900
Sept 2020: 1,141,000
% Change: -6.7%
8) Philadelphia
Feb 2020: 3,183,600
Sept 2020: 2,947,600
% Change: -7.4%
9) Atlanta
Feb 2020: 2,881,700
Sept 2020: 2,128,000
% Change: -4.2%
10) Phoenix
Feb 2020: 2,221,600
Sept 2020: 2,128,000
% Change: -4.2%
Data Sources: The Multifamily Firm & Yardi Matrix