Updated: Mar 7
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