Apartment rents in urban core markets are beginning to drop as the impacts from the pandemic set in. Class-B and class-C rents were the first to struggle with rents and rent collections, but the trend has trickled up to larger buildings. New data from Real Page shows that rents have declined 1.7% in the top 50 markets in the US. This is the first time since 2010 that rents in these markets have decreased. By comparison, national rents have only dropped .2% during the same time.

Suburban rents are outperforming the urban core. During the pandemic, rents in the suburbs have actually increased, up .4%. This trend isn’t necessarily new. Suburban rents have been surpassing urban rents for the last several years. Urban markets tend to be more expensive than the suburban markets, and younger renters often occupy apartments in these markets. As a result, urban markets have been more impacted by the economic destabilization caused by the pandemic.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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