The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
2 WEEKS UNTIL OUR UNMISSABLE FLAGSHIP CONFERENCE MORE THAN 550 ALREADY ATTENDING
2 WEEKS UNTIL OUR FLAGSHIP CONFERENCE 550+ ALREADY ATTENDING
REGISTER NOWDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
12
print
Print
OtherRenee McKeownTue 14 Apr 20

Covid-19 Hurts US Build-to-Rent Sector

9099b991-16d7-44ab-b87d-b877b964d73c

The US build-to-rent sector is struggling with the onslaught of Covid-19 issues from construction bans, delays and almost a third of tenants failing to pay rent.

Only 69 per cent of households paid rent by the first week of April compared to 81 per cent by 5 March and 82 per cent the year before, according to the National Multifamily Housing Council.

The developer and rental property advocacy group also found 55 per cent leading build-to-rent construction firms were experiencing delays at the end of March as Covid-19 cases increased rapidly.

Permitting issues (76pc) and construction moratoriums (62pc) caused the most delays with 73 per cent of companies implementing strategies to deal with hurdles.

Construction on non-essential sites was banned in many cities including New York, Boston, Seattle, San Francisco and Detroit.

Related: ‘Social Distancing’ on Sites Buys Construction Sector Time

US multifamily construction firm Covid-19 strategies

Responses from firms experiencing delays
Impacted by material availability 24%
Impacted by labour availability 41%
Sourcing materials from alternative locations43%
Sourcing alternative building materials16%
Using technology to replace in-person transactions like inspections and approvals67%
Staggering shifts to reduce on-site exposure52%
Offering workforce incentives or other benefits14%

Source: 2020 NMHC Construction Survey to 1 April

NMHC president Doug Bibby said a range of surveys assessed the impact of Covid-19 on the US build-to-rent sector, which included a a rent payment tracker for 13.4 million units.

“The Covid-19 outbreak has resulted in significant health and financial challenges for apartment residents and multifamily owners, operators and employees in communities across the country,” Bibby said.

“However, it is important to note that a large number of residents met their obligations despite unparalleled circumstances, and we will see that figure increase over the coming weeks.”

The US federal government had a similar economic response to the virus as Australia's rental moratorium and coronavirus stimulus package.

Many multifamily property owners were granted mortgage relief by the Federal Housing Finance Agency providing tenants impacted by coronavirus unable to pay rent were not evicted.

To support individuals, businesses, governments, education and the health system a US$2 trillion (A$3.1tn) bill known as the Coronavirus Aid, Relief and Economic Security Act was passed and included cash payments to individuals and benefits to businesses.

Covid-19 cases in the US reached 682,456 at the time of publishing while Australia sat at 6,394.

ResidentialInternationalConstructionConstructionSector
AUTHOR
Renee McKeown
More articles by this author
ADVERTISEMENT
TOP STORIES
The Port of Brisbane has released its Vision 2060 which details the need for inland rail connectivity
Infrastructure

Brisbane Port’s $15bn Future Faces One Big Obstacle

Renee McKeown
5 Min
Freecity Rouse Hill triple towers 2 Tempus Street
Exclusive

Freecity Takes Covers Off $330m Triple Towers in Sydney’s North-West

Leon Della Bosca
5 Min
Parallel Workshops Stockdale Housing PBSA project
Exclusive

Suburban Success Story Turns PBSA Thinking on its Head

Leon Della Bosca
7 Min
Exclusive

Interstate Developers Find Lots to Love in ‘Progressive, Affordable’ SA

Taryn Paris
5 Min
Bates Smart Richmond Sportslink HERO
Exclusive

BtR Focus Drives Bates Smart’s Richmond Sportslink Concept

Leon Della Bosca
6 Min
View All >
Industrial

Inland Rail: Site at Rural Hub Comes to Market in Victoria

Lindsay Saunders
Residential

Home Affordability Gap Widens Across Asia-Pacific

Lindsay Saunders
Stockland's Triniti HERO
Build-to-Rent

Stockland $400m North Ryde BtR Approved on Appeal

Leon Della Bosca
The 510-apartment Triniti Lighthouse development has received conditional planning approval despite community objections…
LATEST
Industrial

Inland Rail: Site at Rural Hub Comes to Market in Victoria

Lindsay Saunders
2 Min
Residential

Home Affordability Gap Widens Across Asia-Pacific

Lindsay Saunders
3 Min
Stockland's Triniti HERO
Build-to-Rent

Stockland $400m North Ryde BtR Approved on Appeal

Leon Della Bosca
3 Min
Logan Wastewater Funding hero
Infrastructure

Flush of Funding to Deliver 20,000 New SEQ Homes

Phil Bartsch
3 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/covid-19-hurts-us-multifamily-build-to-rent-sector