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Excited to be attending the virtual #USCCasden State of the Market: Multifamily Virtual Conference this morning!!
. @elpaavo is talking about joint research between the @UCLALewisCenter and @LuskCenter on how renters have been paying their rent during the pandemic.
So far it appears that most renters are paying their rent on time, but are dipping into savings or going into debt.
So far it appears that most renters are paying their rent on time, but are dipping into savings or going into debt.
Similar to the country as a whole, the LA Metro area had less late rent and and mortgage payments in October compared to August.
78% of renters are paying their rent on time every month, but 7% didn't pay at all in at least month and 2% have not paid in any month during the pandemic period.
Data by landlord type:
Data by race:
Despite the statewide eviction moratorium,15% of late renter households are still being threatened with eviction and 5% reported actually having an eviction initiated against them.
Interesting stuff on how renters, despite reporting job and/or income losses, are making their rent payments!
Most troubling are the more than 40% of late renter households that are using credit cards, payday loans, and other high-interest methods of borrowing money.
Most troubling are the more than 40% of late renter households that are using credit cards, payday loans, and other high-interest methods of borrowing money.
Great panel being moderated by @keynesianr featuring Ingrid Gould Ellen ( @FurmanCenterNYU), Tracie Mann ( @CountyofLA), Jeff Bailey ( @SaresRegisGroup), and Kelly McCunniff ( @GreystarApts).
Jeff Bailey ( @SaresRegisGroup) notes that the job market has recovered faster in the Inland Empire than in LA County and that has led to their properties' occupancy rates remaining consistently strong.
Great question by @keynesianr on how landlords should be evaluating tenants in the future given that many renters will have had their FICO credit scores go down severely during this time.
The consensus among the panelists seems to be that landlords can't just use a 30 year old algorithm (FICO score) to evaluate a potential tenant's ability to pay their rent on time. There will have to be an actual human looking at rental payment histories.
Thanks @keynesianr for asking my question on whether or not we expect a quick rebound in occupancy rates (and rents) as a potential vaccine brings our cities back to somewhat normal.
Seems like the consensus was that there will be no real return to "normal", but cities are not done by any means so expect rents to rise at some point as big city amenities continue to draw people, even if WFH becomes a permanent thing for a lot of companies.
We are back from break!
Jaime Lee (Jamison Realty, Inc.) notes that vacancy rates have gone up in LA and she hears stories of those in the post-production part of the entertainment industry who have moved back in w/ their parents and to cheaper places throughout the country until WFH ends.
George Koiso ( @CBRE) is seeing performance differences between large and smaller assets. He specifically is citing Class A properties, such as those located in Hollywood, that are doing worse than properties at the lower end.
Jaime is noting that she has seen anecdotal evidence that tenants are looking for bigger spaces as WFH continues.
Glad to have a Lieutenant Governor of California that understands housing and economics. Thanks for speaking to us @EleniForCA! #USCCasden
. @EleniForCA: “I don’t believe people are leaving California because they want to. They are leaving the state because it is unaffordable”. #USCCasden
After another quick break, we are back with a panel discussion about the eviction moratorium(s). #USCCasden
Tunua notes that tenants that truly are a nuisance are an extremely rare occurrence.
Both @BenTMetcalf and Bill Witte are in agreement that more funding is needed on the tenant and landlord side, but are not counting on the federal government for that.
