Resilience during a time of market stress
An exceedingly rare worldwide pandemic and social changes in 2020 challenged the Twin Cities multifamily market as never before. Worsening project economics cut across all project types, lasting through the year.
The Twin Cities multifamily sector started 2020 in strong shape, with low vacancy, strong rent growth, and production spreading across the metro area. However, by April, broad shutdown of the economy due to Covid-19 produced record unemployment and forced many people into a work-from-home arrangement, with over 40% experiencing wage loss, and many delaying rent payments as eviction moratoria took effect. Building owners absorbed higher costs for security and health/sanitation as units became work and home alike for many renters.