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Keeping pace with real time data is never a small task, but it’s critical nonetheless when managing your real estate investments. As a hands-on syndicator and sponsor, being keen on real time data can give you a serious advantage in implementing real time strategies or adjustments to your business plan to either capitalize on opportunity, mitigate risks and negative impacts, or often both. In particular, with the severe impacts of COVID, this is more important now than ever before, as the changes are swift and unpredictable.
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
Sources:
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About the Author
Ellie is the founder of Blue Lake Capital, a real estate company specialized in multifamily investing throughout the United States. At Blue Lake Capital, Ellie helps investors grow their wealth and achieve double-digit returns by investing alongside her in exclusive multifamily deals they usually don't have access to.
Ellie is the host of REady2Scale , a podcast that highlights honest, insightful, and thought-provoking discussions on the multiple approaches for successful real estate investing.
She started her career as a commercial real estate lawyer, leading real estate transactions for one of Israel’s leading development companies. Later, as a property manager for Israel’s largest energy company, she oversaw properties worth over $100MM. Additionally, Ellie is an experienced entrepreneur who helped build and scale companies by improving their business operations.
Ellie holds a Masters in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.
You can read more about Blue Lake Capital at www.bluelake-capital.com and learn more about Ellie at www.ellieperlman.com.
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