One of the most essential benefits of real estate investing is building out a solid passive income stream from your tenants; tenants, of course, require employment to pay their rent. Despite what some may think about the eviction moratorium, most tenants want to pay their rents and have peace of mind like any of us. Earlier this week I shared information on how to best handle non-paying tenants, so today I’d like to share which markets these challenges are most likely to be found in for now, as well as which are weathering the challenges quite well.
Based on a recent report from RealPage, the annual rates of job change in many major markets has been significant. With the impact of COVID, some markets have of course been affected far worse than others, while a couple markets have in fact seen an employment increase. With this in mind, here are the 12 least and most impacted major market employment change rates as of July 2020:
The 6 Most Impacted Major Markets by Employment Change:
6. Washington-Arlington-Alexandria, DC-VA-MD-WV
- Annual Employment Change 2019 - 2020 (#): -244,800 (-11.3%)
- Average Rent for an Apartment: $1,377
- Primary Employment Industries: Manufacturing, Retail, Healthcare
5. Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
- Annual Employment Change 2019 - 2020 (#): -254,900 (-8.6%)
- Average Rent for an Apartment: $1,652
- Primary Employment Industries: Healthcare, Retail, Education
4. Boston-Cambridge-Newton, MA-NH
- Annual Employment Change 2019 - 2020 (#): -328,700 (-12.2%)
- Average Rent for an Apartment: $1,377
- Primary Employment Industries: Education, Healthcare, Professional Services
3. Chicago-Naperville-Elgin, IL-IN-WI
- Annual Employment Change 2019 - 2020 (#): -367,800 (-8.1%)
- Average Rent for an Apartment: $1,943
- Primary Employment Industries: Healthcare, Manufacturing, Retail
2. Los Angeles-Long Beach-Glendale, CA
- Annual Employment Change 2019 - 2020 (#): -424,900 (-9/4%)
- Average Rent for an Apartment: $2,106
- Primary Employment Industries: Healthcare, Retail, Hospitality
1. New York-White Plains, NY
- Annual Employment Change 2019 - 2020 (#): -1,026,700 (-14.2%)
- Average Rent for an Apartment: $2,804
- Primary Employment Industries: Healthcare, Education, Professional Services
The 6 Least Impacted Major Markets by Employment Change:
6. Fayetteville-Springdale-Rogers, AR-MO
- Annual Employment Change 2019 - 2020 (#): -4,400 (-1.7%)
- Average Rent for an Apartment: $781
- Primary Employment Industries: Healthcare, Manufacturing, Retail
5. Lincoln, NE
- Annual Employment Change 2019 - 2020 (#): -1,400 (-0.7%)
- Average Rent for an Apartment: $968
- Primary Employment Industries: Healthcare, Retail, Manufacturing
4. Provo-Orem, UT
- Annual Employment Change 2019 - 2020 (#): -700 (-0.3%)
- Average Rent for an Apartment: $1,434
- Primary Employment Industries: Education, Retail, Healthcare
3. Chattanooga, TN-GA
- Annual Employment Change 2019 - 2020 (#): -700 (-0.3%)
- Average Rent for an Apartment: $1,003
- Primary Employment Industries: Manufacturing, Healthcare, Retail
2. College Station-Bryan, TX
- Annual Employment Change 2019 - 2020 (#): + 700 (0.6%)
- Average Rent for an Apartment: $974
- Primary Employment Industries: Education, Retail, Hospitality
1. Boise City, ID
- Annual Employment Change 2019 - 2020 (#): + 1,700 (0.5%)
- Average Rent for an Apartment: $1,194
- Primary Employment Industries: Healthcare, Retail, Manufacturing
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About Ellie Perlman
Ellie Perlman is the founder and CEO of Blue Lake Capital, a woman owned multifamily real estate investment firm focused on partnering with family offices and accredited investors to build and preserve generational wealth. Since its founding in 2017, Blue Lake has successfully acquired and operated multifamily assets across high-growth U.S. markets, completing $1B+ in transactions.
At Blue Lake Capital, Ellie and her team work exclusively with family offices and accredited investors, offering carefully curated investment opportunities that emphasize long-term wealth creation, stability, and risk-adjusted returns. A defining aspect of Blue Lake’s investment strategy is its integration of advanced AI-driven analytics and data science into the entire lifecycle of acquisitions and asset management. By leveraging cutting-edge technology, the firm executes data-driven forecasting on market trends, asset performance, and tenant behavior, ensuring strategic decision-making and optimized returns.
In addition to leading Blue Lake Capital, Ellie is the original founder and host of "REady2Scale - Real Estate Investing" podcast, which provides insights into multifamily real estate, alternative investments, and finance.
Ellie began her career as a commercial real estate attorney, structuring and negotiating complex transactions for one of Israel’s leading development firms. She later transitioned into property management, overseeing over $100M in assets for Israel’s largest energy company.
Ellie holds a Master’s in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.
You can learn more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.
*The content provided on this website, including all downloadable resources, is for informational purposes only and should not be interpreted as financial advice. Furthermore, this material does not constitute an offer to sell or a solicitation of an offer to buy any securities.
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