Apartment rents sluggish as COVID-19 cases keep rising

The multifamily market has remained one of the strongest real estate sectors even as the COVID-19 pandemic spreads throughout the United States. But a new look at this sector shows that even it has not been immune to the negative economic impact of the pandemic.

The key stat? Monthly rents. They’re simply not rising today.

July one-bedroom apartment rents remain mostly flat as the multifamily sector continues to deal with the COVID-19 pandemic, according to the July rent report released last week by ABODO.

According to the report, the median one-bedroom apartment rent across the United States stood at $1,104 in July. That’s up just 1.66 percent from January, when the median monthly rent for a one-bedroom unit was $1,086.

Rents for two-bedroom units were even less impressive. ABODO said that the median monthly rent for a two-bedroom apartment unit in the United States hit $1,344 in July. That’s actually down — 0.15 percent — from January, when that figure stood at $1,346.

Despite the overall sluggishness, some Midwest markets did see monthly apartment rents rise in July. In St. Louis, the median one-bedroom apartment rent jumped 5.19 percent from June to July, hitting $994. In Cleveland, the median one-bedroom rent rose from $1,147 in June to $1,208 in July. And in Indianapolis, this figure rose from $860 to $894, while Detroit saw it increase from $1,034 to $1,070 and St. Paul saw a jump from $1,236 to $1,274.

Some of the same markets also saw their median two-bedroom apartment rents increase. In Cleveland, the median two-bedroom rent jumped from $1,345 in June to $1,458 in July. This figure increased from $795 to $859 in Detroit and from $1,052 to $1,108 in St. Louis. And in Kansas City, the median two-bedroom apartment rent increased from $1,210 in June to $1,259 in July.