COVID-19: Impact on Capital Markets & New Development (Webcast Summary)

To support the multifamily community through the current COVID-19 crisis, we’ve launched a series of discussions centered around its impact on the rental housing industry with the latest data, expert insights and actionable measures stakeholders can take to minimize fallout. Register for upcoming webcasts and watch previous episodes on demand at the COVID-19: Resource Center. This is a condensed summary from the webcast, COVID-19: Impact on Capital Markets & New Development, broadcast on April 7, featuring RealPage® Chief Economist Greg Willett, VP/Deputy Chief Economist Jay Parsons and special guest Jim Costello, SVP Real Capital Analytics, a RealPage data partner.   ECONOMIC UPDATE: CURRENT LEASING INDICATORS For apartment investors, rent roll is everything driving valuation and cash flow. And it all begins with leasing traffic. The most current leasing indicators compiled from the RealPage platform, servicing 13.5 million apartment units in the U.S., shows leading traffic to property websites is down 15% year-over-year, measured on a rolling 7-day average and on a same-store basis. Guest card counts are down about 30% year-over-year. Actual lease signings are down even more. Executed new lease volumes plunged 40% year-over-year, again on a same-store basis looking at a rolling 7-day average. The good news is that everything we’re hearing from property managers is that they’re still seeing some traffic. These prospects tend be very serious shoppers in need of new places to live. But, don’t tether yourself to asking rents for comps. Currently, these rates go unsold the vast majority of the time.   There has also been a big spike in rescinded notices to move out. A rescinded notice is a renter who gave notice they would not renew their lease but then changed their minds. Occupancy rates are also holding steady. Use this time to focus on retention and smart operational execution. REAL ESTATE CAPITAL MARKETS: IMPLIC...