So far, the apartment market has held up relatively well after COVID-19. But Jake Reiter, president of Verde Capital, does see some issues on the horizon.
"Maybe multifamily holds up better if it's not C class," Reiter says. "But C is not weathering the storm as well because its [renter] demographic is more likely to be unemployed and less likely to be able to make payments."
The resident profile of Class C apartments is what gives Reiter some reason for concern. "That [issues in C] really has to do with the demographic that is the renter and that directly is related to unemployment claims," Reiter says. "Those people tend to work in hospitality and restaurants and bars and airports. That's the demographic where you see the most job loss."
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
