Lower-income renter confidence in paying rent dipped as the CARES Act expirations approached.
The performance gap between higher- and lower-income renters widened.
The course of the pandemic and governmental assistance will continue to affect market stability.
Second to only the toll on public health, the economic fallout remains one of the most pressing effects of the ongoing pandemic. Starting first in major metros across the Northeast, namely New York and Boston, through March and April, the virus spread throughout urban centers and their surrounding areas like wildfire.
Employers shuttered their offices and sent staff home, while states implemented restrictions on commercial activity, drawing consumers away from the economic and lifestyle interactions that give cities their value. In New York City alone, more than one million residents have lost employment, while the demand-driving gears of the city have shifted into neutral.
Concerns over how the shutdown would impact apartment markets in cities like New York and elsewhere quickly bubbled. But the swell of stimulus and tenant protections introduced in the federal CARES Act proved effective in slowing the threat.
For the full analysis, visit Arbor Chatter at the Arbor Realty Trust website.