The COVID-19 pandemic has forced some states to impose strict stay-at-home orders that are adversely affecting many industries. This is leading the U.S. economy into a recession that will result in very sharp declines in GDP for H1 2020 and in job losses, particularly in the retail, food & beverage and transportation sectors.
The economic downturn is having a serious negative impact on the multifamily sector that is not fully reflected in Q1 2020 data given the late-quarter onset of COVID-19. Q2 will be much worse.
Overall, Q1 was characterized by relatively low vacancy, solid rent growth and dynamic investment and financing activity.