Multifamily Lease Concessions and Lower Rents Drive Occupancy in October

Latest Report from MRI Software Tracks Effects of COVID-19 On Market-Rate Housing Throughout the U.S.

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Nov 12, 2020, 09:00 ET

SOLON, Ohio, Nov. 12, 2020 /PRNewswire/ -- Landlords who used lease concessions and lower rents to promote occupancy succeeded in their mission in October, according to the latest report from Proptech firm MRI Software ("MRI"). As renters took advantage of these incentives, move-out volume dropped to 66% of October 2019's volume.

The firm's newest report compiles data from more than one million market-rate units (a subset of the total units managed by MRI clients) in January-October 2020 and January-October 2019. Analysis includes both year-over-year and month-over-month comparisons.

Highlights:

Concession value increased by $6 million, or 42%, YOY, representing a new high for 2020.
Lease pricing remains depressed, down 2% YOY, but not as low as it was in September (down 3% YOY).
Move-outs in October 2020 dropped significantly from September 2020.
Move-in volume neared 2019 rates for the second month.

"Winter has traditionally been the slow leasing season, and the pandemic is adding uncertainty into the equation," says Brian Zrimsek, Industry Principal, MRI Software. "That's why landlords are effectively buying higher occupancy with lower pricing and increased concessions.

"This trend is likely to continue until it becomes clear whether an effective vaccine will be available in the near future and whether a new stimulus package will be enacted," he notes. "We will be monitoring the situation carefully."

About MRI Software
MRI Software is a leading provider of innovative real estate software applications and hosted solutions. MRI's comprehensive and flexible technology platform coupled with an open and connected ecosystem meets the unique needs of real estate businesses – from property-level management and accounting to investment modelling and analytics for the global commercial and residential markets. A pioneer of the real estate software industry, MRI develops lasting client relationships based on nearly five decades of expertise and insight. Through leading solutions and a rich partner ecosystem, MRI gives organizations the freedom to transform the way communities live, work and play while elevating their business and gaining a competitive edge. For more information, please visit mrisoftware.com.

MEDIA CONTACTS:

(U.S. for MRI)
Rachel Antman (+1 212-362-5837)
[email protected]

(U.K.) Platform Communications for MRI
Zoe Mumba (+44 7725 832393)
or Hugh Filman (+44 7905 044850)
[email protected]

SOURCE MRI Software