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Yardi Matrix: Multifamily May Feel COVID-19 Impact
The global spread of the COVID-19 virus has brought a technical end to the 11-year bull market in equities, forced a European travel ban and sent Treasury rates to historic lows, Yardi Matrix reports. Although travel, hotel, restaurant and trade industries will likely be hurt the worst, multifamily may also feel the impact, according to the Santa Barbara, CA-based company’s special report.
“Owners and operators may face short-term rent collection issues if there is a tightening in the employment market, and value-add projects will likely slow,” the report states. “However, most real estate investors are poised to sustain their operations, and may see an investment opportunity as the market shocks continue.”
Yardi Matrix expects COVID-19’s impacts to last three to six months, “before a steady recovery boosts the economy once again. Given the short-term nature we anticipate, this could offer an investment opportunity for owners with ample cash available.”
For comments, questions or concerns, please contact Paul Bubny
- ◦Economy
- ◦Sale/Acquisition
