Apartment renters have remained loyal to central business districts despite COVID-19, with "little evidence" showing permanent moves away from urban areas, according to a new analysis from Moody's Analytics REIS.

When the pandemic dawned, many CBD residents looked toward less dense submarkets or smaller cities with more affordable housing. Inventory growth in CBD apartment markets shrank as demand waned, and the effective rent gap between CBD and non-CBD markets narrowed. 

But as vaccines became more widely available and more people returned to the office, CBDs began a slow process of recovering, according to Moody's – and CBD apartment demand is now picking up steam.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.