Kiser Group recently surveyed clients to learn more about how mid-market multifamily owners throughout Chicagoland are being impacted by COVID-19. Responses were received from a diverse cross-section of multifamily ownership profiles and a geographic spectrum of the entire Chicago MSA including southeast Wisconsin and northwest Indiana. Input was received from more than 14,000 units, resulting in a data set sufficient for analysis of Chicagoland’s mid-market multifamily industry.
The survey results regarding residential rent collection indicate continued strength. Apartment rent collection exceeding 80% was reported by more than 94% of respondents for March and April, and May rent collections above the 80% threshold are actually slightly higher at 95% of respondents.
We saw plenty of headlines and commentary from institutional sources speculating the sky might be falling; however, we have always understood the strength of the mid-market and now have data to substantiate its resiliency.
An interesting takeaway from this survey is what is happening to the distribution among subcategories that are higher than 80% collection. In March, the 95-100% category was by far the largest, with more than 71% of tenants falling into that tranche. By May, that number dropped to 22%. The delta is being redistributed in other acute ranges above 80%, especially in the 85-95% range. The important thing is that rent collections and the mid-market industry remain strong.