COVID-19 Special Report: June Status Update

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• The economic outlook has brightened considerably from just a few months ago. The early forecasts for employment losses appear to have been overstated, the economy is reopening, and apartment properties have been recording steady performance.

• After volatility marked the first half of 2020, the second half of the year will be a period where markets work their way back closer to normal. Labor markets should improve, but not all of the jobs that were cut will come back right away. Several businesses in industries that were sidelined by the economic shutdown have outlined plans to ramp up operations in the coming months.

• With the economy stabilizing, multifamily investment activity is expected to accelerate before the end of the year. Pricing has generally held fairly steady, and cap rates have recorded only modest increases. Low interest rates are keeping cap rates similar to levels from recent years. 

Read the full report here.