Vegas, New Orleans lead US in missed September rent payments

Cities that rely on tourism and hospitality are seeing the number of missed rent payments tick up

TRD NATIONAL /
Oct.October 05, 2020 04:00 PM
(iStock)

(iStock)

The loss of tourism due to Covid-19 travel restrictions is hurting cities across the U.S. — and now, the economic impact is trickling down to renters.

Cities that are heavily reliant on the tourism and hospitality industries are seeing higher numbers of tenants who have missed rent payments, according to data from RealPage. The data covered tenants who reside in professionally managed buildings and excludes single-family rentals.

New Orleans had the largest share of tenants who missed a rent payment in September, going up to 12.9 percent from 8.6 percent a year earlier.

Las Vegas has also been hit hard: More than 10 percent of tenants in that city missed their rent payment in September, up from 4.1 percent in the previous year. The city’s economy was devastated by casinos operating at reduced capacity, as well as canceled business conferences.

“Trouble spots include really expensive metros where unemployment benefits don’t cover rent and hospitality-heavy economies where the number of workers losing their jobs is so high,” said said Greg Willett, chief economist at RealPage.

Some of those pricier markets include New York, where 6.7 percent of tenants missed rent, up from 3.8 percent in the previous year, and Los Angeles, where 6.6 percent of tenants missed their September payment, up 2.2 percent from the same time last year.

The multifamily sector has remained stronger than was initially expected at the onset of the pandemic. The National Multifamily Housing Council recently reported that 92.2 percent of apartment households made a full or partial rent payment by Sept. 27, although its report tracks only market-rate rentals, not ones that are rent-regulated.

But some experts say that the full impact of the virus has yet to be felt on the sector since eviction moratoriums are still in place. Extra relief for renters under the CARES Act ran out at the end of July.






Related Articles

arrow_forward_ios
Clockwise from top left: 162 West 13th Street, 325 Avenue Y in Brooklyn, 1281 Viele Avenue in the Bronx (Credit: Google Maps)

Here’s what the $10M-$30M NYC investment sales market looked like last week

Here’s what the $10M-$30M NYC investment sales market looked like last week
Real Capital Analytics data showed that New York’s multifamily market had a very slow July. (Credit: iStock)

New NYC rent law “beginning to shut down investment”

New NYC rent law “beginning to shut down investment”
Numbers were down across the board (Credit: iStock)

New York’s multifamily market had its slowest first half of the year since 2011

New York’s multifamily market had its slowest first half of the year since 2011
Starwood loses control of another mall in default

Starwood loses control of another mall in default

Starwood loses control of another mall in default
The National Association of Home Builders Housing Market Index reached a record high for the second consecutive month in October 2020. (iStock)

Building up: Homebuilder confidence hits new highs

Building up: Homebuilder confidence hits new highs
San Francisco and New York (iStock)

San Francisco rents continued unprecedented slide

San Francisco rents continued unprecedented slide
107 Chambers Street and Allison and Frederick Thompson (Google Maps, Tribeca Health & Fitness) 

Another fitness studio in Manhattan goes belly-up

Another fitness studio in Manhattan goes belly-up
Mahnaz Zahedi pictured with her parents in 1962 (inset) and  444 E Alexander Palm Road (Getty, Zillow)

Iranian princess sells her waterfront Boca Raton home

Iranian princess sells her waterfront Boca Raton home
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...