Multifamily Leasing Performance in August Exceeds Pre-pandemic Levels

September 27, 2021 | Institute for Real Estate Operating Companies

A strong recovery in multifamily leasing occurred in August 2021, compared not only to the prior year but also to August 2019 (the pre-pandemic baseline), according to the latest report from proptech firm MRI Software.

Highlights of the report, based on data from 1 million market-rate units across three consecutive Augusts, include:

• Pricing increased 11 percent between 2020 and 2021 and 7 percent between the baseline and 2021.

• Traffic increased 18 percent between 2020 and 2021 and 38 percent between the baseline and 2021.

• Move-in volumes increased 16 percent between 2020 and 2021, down only 4 percent from the baseline.

• Renewal volumes increased 5 percent between 2020 and 2021, down only 7 percent from the baseline.

• Move-outs have decreased 13 percent between 2020 and 2021 and 30 percent between the baseline and 2021, fueling the tightening of supply.

Not every metric was positive, however.

“Although concession volume has stabilized, the average concession value has remained high,” said Brian Zrimsek, industry principal, MRI Software. “Furthermore, through MRI’s participation in the NMHC’s Rent Payment Tracker initiative, we know that on-time payment performance continues to erode, and that 8.5 percent of the delinquent rents are more than six months in arrears.”