Freddie Mac: Most Renters Prioritize Rent Payments Amid Pandemic

Freddie Mac, McLean, Va., reported that overall rental payment performance has remained strong in the face of the pandemic-related economic downturn.

Freddie Mac Multifamily’s research group examined the five major resources that capture rent payment, including reports from The Household Pulse Survey, LeaseLock, Apartment List, the National Association of Real Estate Investment Trusts and the National Multifamily Housing Council. The GSE found that differing methodologies lead to differing results, but overall rental payment performance has stayed strong.

The report also examined rental payment data for properties with loans in Freddie Mac’s own securitized loan population. It found 93.6 percent of renters in these properties paid full or partial rent in May on average and 94.2% paid full or partial rent in June.

“The surveys analyzed in this report provide valuable insight into the rental market during this unprecedented time and it is important to consider what each source captures and how that fits into the bigger picture,” said Steve Guggenmos, Vice President of Multifamily Research and Modeling at Freddie Mac. “The data shows that rent payment has remained healthier than some market participants anticipated throughout the crisis because renters are prioritizing making their rent payments, even in financially stressed households.”