SOLON, Ohio (MO.Properties) – Rent payments in affordable housing rose to 82% of the prior year during October, the first month since June that the rates exceeded 80% YOY. That is a key finding of the latest report from Proptech firm MRI Software (“MRI”).
MRI’s report compiles data from more than 1.5 million affordable and public housing units throughout the U.S. in January-October 2020 and January-October 2019. Analysis comprises both year-over-year and month-over-month comparisons.
Collections in public housing dropped slightly. In October they reached only 94% YOY compared to 98% YOY in September.
Move-outs in affordable housing decreased by 17% YOY, leading to higher occupancy rates for the sector. Move-ins, at 92% of last year’s volume, affected the rates to a lesser extent. Move-ins and move-outs in public housing, meanwhile, have remained steady in recent months – but significantly below 2019 volumes.
“In our previous report, we expressed concern about the collection rates in affordable housing, but the recent stats are reassuring,” says Brian Zrimsek, Industry Principal at MRI Software. “That said, the pandemic will continue to affect trends in both sectors. If a vaccine becomes widely available, we can expect unemployment rates, and, in turn, financial pressures on tenants, to decrease. A stimulus package would also influence collections.
“The situation could change rapidly,” he notes, “and we’ll keep tracking the data on a monthly basis through the end of the year.”
About MRI Software
MRI Software is a leading provider of innovative real estate software applications and hosted solutions. MRI’s comprehensive and flexible technology platform coupled with an open and connected ecosystem meets the unique needs of real estate businesses – from property-level management and accounting to investment modelling and analytics for the global commercial and residential markets. A pioneer of the real estate software industry, MRI develops lasting client relationships based on nearly five decades of expertise and insight. Through leading solutions and a rich partner ecosystem, MRI gives organizations the freedom to transform the way communities live, work and play while elevating their business and gaining a competitive edge. For more information, please visit mrisoftware.com.