In the apartment sector, gateway markets have suffered the harshest blow during the pandemic. In large metros, apartment vacancy rates surged and in response, rent rates plummeted—but this year, the tide will likely turn. Research from Freddie Mac expects the apartment market to take the first steps toward recovery this year.

New York and San Francisco had the most severe decreases in occupancy and rent. Rents fell by more than 10% in both markets last year, and vacancy grew by 1.1% in San Francisco and 1.5% in New York. These two markets also suffered steep decreases in employment, with New York suffering 10.4% job loss and San Francisco job loss totaling 7.6%.

Smaller metros like Washington DC and Miami had less dramatic losses and rent and occupancy. Washington DC rents fell by 6% in 2020 and Miami rents dropped 4.1%, while the vacancy rate increased by .8% and 1.2%, respectively. Job losses were also less severe in these two markets, down 4.8% and 5.1% respectively.