Apartment landlords are grappling with a pandemic that has impacted rent growth and demand. San Diego rent growth was negative in the second quarter during a time that it is typically surging ahead of the prime summer leasing months. Demand also fell to the lowest level in a decade after colleges closed across the region and residents sheltered in place.
Double-digit unemployment and sunsetting federal stimulus checks and additional unemployment benefits also weigh on the ability of renters to continue meeting their rent obligations in the coming months.
Amid that turbulence, deal flow in the multifamily market decelerated even further in the second quarter, recording the fewest transactions since 2011 with only 72. That followed a first quarter that held that same title with 88 deals. For comparison, the average number of quarterly trades in 2019 was 143.
Sales volume also fell during the
second quarter, with $305 million in communities traded. That’s down from $485 million in the first quarter, and about half of the quarterly average from last year.