About 19% of apartment renters nationwide hadn’t made this month’s payment as of June 6, according to the latest data from the National Multifamily Housing Council, which represents major apartment landlords.
Almost 90% of renters around the country made their April payments — the first full month that the COVID-19 pandemic affected the economy.
Late rent payment rates so far in June are running about 1% higher than they were a year ago, which is not a huge increase. But apartment owners expect the delinquencies to rise if unemployment remains high.
In the Dallas-Fort Worth area, almost 89% of apartment residents had made this month’s rent payment by June 6, according to Richardson-based RealPage.
“While overall rent payment results are encouraging, there’s meaningful deterioration in the ability to meet rent obligations among those living in lower-priced class C apartment product across the nation,” RealPage market analyst Adam Couch said. “The share of residents in class C properties paying rent by June 6 was just 73.2%.”
Apartment owners are concerned that rent payments will decline further when federal unemployment payment assistance expires in July.
“There are serious signs of economic dislocation outside of our reporting universe that underscore the need for Congress to pass a direct rental assistance program and extend unemployment benefits before it’s too late,” Bibby said.