So far the multifamily asset class has fared well during the pandemic, with the vast majority of renters staying on top of their monthly obligations. In addition, the capital markets for apartments have remained open for business during this time. 

However a set of unfortunate factors are coalescing to create what Ivan Kaufman, CEO of Arbor Realty Trust, says will be the perfect storm for multifamily. These include the expected end to the supplemental unemployment payments this month and the recent surge in Covid-19 infections across the US that could keep businesses closed for longer than anticipated, he says.

Arbor Realty Trust provides financing for the multifamily asset class with a heavy emphasis on workforce housing. It has had, in other words, a front row seat to the unfolding developments from the novel coronavirus. Without a doubt, Kaufman tells GlobeSt.com, as an asset class multifamily has performed remarkably well to date. Much of that has been due to the CARES Act and its supplemental unemployment payments, which have been credited to keeping rent payments as high as they have been, he says. "Lenders like us and property operators haven't felt the impact of the employment losses created by Covid-19 to date," he explains. "The supplemental payments have put people in as good, if not better, positions than when they were working."