Coronavirus Hit on Multifamily Units May Be Modest

Every day, during the Covid-19 crisis, the news gets worse. And it seems that there’s no light at the end of the tunnel. Even the most starry-eyed optimist can find little comfort today. BUT the virus will end. It may take a few more months, but it will end.

Charles Hewlett, a managing director at RCLCO, a Maryland-based real estate advisory firm, said during a webinar late last week that the economic turndown should last a relatively quick two months.

Mr. Hewlett says that evidence from China, South Korea and Italy indicates “there may be light at the end of the tunnel, and the trajectory of the coronavirus may be of relatively short duration in the U.S.”

When it comes to the multifamily rental market, Hewlett believes that rental rates will decline for the next 12-18 months but will then rebound with “relatively robust rental growth” at a 3-5% clip.”

Let’s hope he’s right.

Read on HERE.

Mr. Willig engages and coordinates a professional team of real estate brokers, general contractors, leasing agents, and property managers in order to rehabilitate, lease and maintain the properties he acquires for SpringView Investments. He has over 20 years of finance and accounting experience.