Juran was featured as an expert in Heartland Real Estate Business’ Market Highlight: Cincinnati. Topics included: COVID-19 impact; market conditions, what’s drawing investors, rising construction costs, increasing competition, robust financing market and single-family housing.
CINCINNATI, OHIO (August 18, 2021) — Cincinnati remains a highly sought after market for multifamily investors as the U.S. emerges from the COVID-19 pandemic. The Cincinnati area’s apartment market fundamentals, including rent growth, rent collections and occupancy levels are holding up well.
Significant amounts of capital — including local, out-of-state and international — are aggressively seeking to be deployed into multifamily assets, which continues to drive up pricing. Multifamily has outperformed many other commercial real estate sectors during COVID, as many investors consider it a safe-haven investment. However, a lack of inventory for sale is slowing transaction activity.
While delinquencies increased in 2020 due to pandemic-related layoffs and furloughs, many apartment owners in Cincinnati recorded strong rent performance, especially those properties that are well-managed and efficiently screen tenants. There was an eviction moratorium in Ohio, but it had a minimal impact. Workforce housing properties with lower-income tenants experienced the most negative effects during the pandemic.
Many operators in Cincinnati and throughout the Midwest recorded collections at or above 90 percent, which is typical. Owners may have had a couple of tenants who requested rent relief or deferred payments, but after the dust settled, most borrowers, owners and operators did not experience significant collections issues.