Apr 1, 2020
Mike Taravella and co host Will Coleman interview David Kahn, the managing analyst for CoStar group concentrating on the Atlanta metro and the Southern United States.
Key Information:
Keep an eye on the unemployment claims, Government stimulus package, daily rents.
Rents react very fast when there is a disruption in the market. We have already seen a rental rate decline over the last few days.
Government agencies seem to be all in when it comes to helping the economy recover.
Not yet seeing a variance in rental rate declines between class A, B, and C apartments. In the short term it doesn’t seem like white collar jobs are being impacted as of yet however long term with interest rates so low we may see more of this class residents move towards buying a house.
Other than supply chain issues, the industrial space looks relatively strong right now.
9-11% unemployment seems to be the most reasonable estimate so far.
GDP loss for Q2 is projected anywhere between -12% to -25% however the good news is that the Q3 and Q4 GDP growth show more positive estimates.
There will be a pause from the capital markets however as of now buyers are still looking at deals and occupancy rates are still record high.
Keeping an eye on development over the next few months could lead to a lack of supply for multi-family over the next 12-18 months.
Expert Pro Tip: Check out CoStar News! Also check out WARN Reports which state the location and number of layoffs in each state.
Contact Information:
dkahn@costar.com
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