Pricing for new apartment leases was down 5% in August from the prior year and lease renewals for under 12 months were on the rise, according to a monthly report on Covid-19's impact on multifamily housing from MRI Software.
The August drop in new lease pricing continues a trend from July, with properties using shorter-term pricing incentives for leases of less than a year. This shows "good expiration management practices" to protect summer 2021 leases and avoid late-year expirations, said the MRI Software report, which is based on data from its property management software users.
Historic levels of unemployment and far-reaching eviction moratoriums from the pandemic have created too much uncertainty in the multifamily market, as budget season approaches, to "simply take prior year actuals and cast them forward with annual increases," according to the report.
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Meredith Hobbs
Meredith Hobbs writes about the Atlanta legal community and the business of law. Contact her at [email protected] or 404.419.2837. On Twitter: @MeredithHobbs.
