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Yardi Matrix: Renter Demand for Apartments Held Up in Pandemic
Renter demand for apartments remained strong nationally in 2020, the pandemic notwithstanding, Yardi Matrix reported. Around 252,000 apartment units were absorbed last year, about 1.7% of total market stock and down 12% year-over-year from 2019.
“Considering the economic and social calamity that befell the U.S., in many respects due to COVID-19, the fact that demand held up as well as it did is a relief for the apartment industry,” say Matrix analysts.
Net absorption was strongest in 25 of the 30 largest metros, accounting for 158,300 units absorbed. Dallas, Atlanta and Denver saw the highest absorption rates.
Negative absorption was centralized in key gateway markets hit hard by COVID, which also struggled with average rents. The worst performers were the Bay Area and New York City, which combined for -22,100 units absorbed in 2020. However, Matrix says even markets with strong absorption—including Seattle and Austin—saw year-over-year rent declines.
