HOT & RELEVANT TOPICS
Study: Despite Pandemic, More Renters Moved in 2020
A recent study by StorageCafe outlined the continued appeal of urban living to many renters, but some of the study’s auxiliary findings were most eye opening. Most notably, 18% more American renters relocated in 2020 than in 2019 despite the pandemic, according to the study, with most upgrading to bigger homes. Of those relocating, 48% were millennials with Gen Z the next most frequently on the move. Additionally, only 21% of renters who moved from major metros relocated to the suburbs. The study also indicated that high-income renters were less like to relocate to the ‘burbs.
Can Apartment Communities Require Vaccines? It’s Complicated
While enough vaccines will be available for the nation’s entire adult population as soon as May 31, it doesn’t mean everybody will get one. According to Vox, one of three American adults is opposed or hesitant about the vaccine. Which begs the question: Can property managers require onsite associates—and residents themselves—to get the vaccine? While you can require it of associates, federal law insists leaders must also make reasonable accommodations for those with concerns about the vaccine. The resident side is more complicated, but as of now, it can be strongly encouraged but not required.
Average Rent Due to Exceed $6K, Minorities Feel Most at Risk
The number of residents behind on rent will climb to 7 million by the end of June according to the Consumer Financial Protection Bureau, a federal watchdog agency. The CFPB projects that the average rent owed will be in the $6,100 range. The analysis is based upon Census data, which shows people of color are significantly more likely to believe that they are facing eviction. The data indicates that 15.7% of Black survey respondents and 11.3% of Hispanics believe they are likely to be forced out. That’s compared with 6.2% of whites and 4.2% of Asians. Income factors weigh significantly into delinquency trends, as well.
IN THE NEWS
LeaseLock Hits $1B Milestone in Record Time
Five months ago, insurtech startup LeaseLock reached $500 million in leases insured. The company has since doubled that total and surpassed the $1 billion mark. The platform, which provides renters with an alternative to security deposits while offering protection for rental-housing operators, grew 400% in 2020 and encompasses approximately 1.5 million apartment homes spanning 36 states. “Achieving the $1 billion in leases insured signals that the industry is approaching a tipping point where deposits are quickly becoming extinct,” said Derek Merrill, CEO and cofounder of LeaseLock.
Lincoln to Acquire Major Minneapolis Apartment Operator
Lincoln Property Co. is about to quadruple its size in the sizzling Minneapolis/St. Paul market. The Dallas-based company has announced that it will acquire Excelsior Multifamily (the property management arm of The Excelsior Group). In doing so, Lincoln will significantly increase its footprint in the Twin Cities by adding 27 communities and approximately 4,500 apartment homes. Lincoln is the nation’s No. 2 apartment manager and 18th largest apartment owner, according to the National Multifamily Housing Council’s 2020 rankings. The company’s northern portfolio just got a major boost.
Infrastructure Plan Seeks Significant Investment in Housing
Affordable housing could be getting a boost. Last week, President Joe Biden unveiled a $2.25 trillion infrastructure plan today that includes the investment of $213 billion to produce, preserve and retrofit more than 2 million affordable and sustainable homes. The measure is part of the American Jobs Plan, which also aims to build and rehabilitate more than 500,000 homes for low- and middle-income homebuyers. Biden is asking Congress to pass the Neighborhood Homes Act, which would provide more than $20 billion in tax credits. In addition to other housing-based initiatives, the infrastructure plan will also address transportation, water, energy and broadband improvement measures.