Las Vegas tops US cities with biggest rise in missed rent payments with 10% of tenants unable to pay in September as tourist hotspots are hit hard by the pandemic
- Stark analysis from RealPage revealed the main areas among the nation’s 50 biggest metropolitan areas where tenants struggled to pay their rent last month
- Tenants were more likely to miss payments in major cities that rely heavily on the tourism and entertainment industries that used to be the lifeblood of the cities
- Las Vegas recorded the biggest leap in tenants not paying their rent with 10.6% of renters skipping a payment last month, up from 4.1% in September 2019
- New Orleans recorded the biggest share of apartment renters who failed to pay rent, with 12.9% not paying in September
- Vegas and New Orleans are key tourist hotspots hard hit by the pandemic
- Los Angeles, Seattle and New York also recorded spikes in missed rent payments
- Nationwide, 7.8% of all apartment renters didn’t pay their September rent
Las Vegas has topped US cities for the biggest rise in missed rent payments with 10 percent of all tenants unable to pay in September as tourist hotspots are hard hit by the pandemic.
Stark analysis from RealPage revealed the main areas among the nation’s 50 biggest metropolitan areas where tenants struggled to pay their rent last month.
It revealed tenants were more likely to miss payments in major cities where the tourism, entertainment and restaurant industries were the lifeblood of the cities.
Stark analysis from RealPage revealed the main areas among the nation’s 50 biggest metropolitan areas where tenants struggled to pay their rent last month
Las Vegas recorded the biggest leap in tenants not paying their rent in September compared to the same month in 2019, with more than one in 10 (10.6 percent) renters in Sin City skipping a rent payment last month.
This marked the most staggering spike in missed payments by 6.5 percent, up from just 4.1 percent of tenants who missed a payment back in September 2019.
Meanwhile, New Orleans recorded the biggest share of apartment renters who failed to pay rent overall last month, with the data showing 12.9 percent didn’t pay in September.
This was less of a leap from pre-COVID times, however, with 8.6 percent also failing to pay rent in the city back in September 2019.
Both Vegas and New Orleans are key tourist hotspots and have been hard hit by both the lockdowns and the new normal that has arisen since economies reopened across the country.
The lights of Sin City went out for one of the first times in history back in March as casinos shuttered to slow the spread of the virus.
New Orleans also ground to a halt after the annual Mardi Gras celebration sparked a massive outbreak among revelers.
While both cities have reopened with coronavirus safety measures in place, travel restrictions mean they are struggling to draw in the crowds.
Several flight bans with key international destinations have rumbled on – even after lockdowns eased and infection rates in many affected areas slowed – meaning the usual influx of tourists has been depleted.
Tenants in other major expensive cities have also felt the fallout of the pandemic as unemployment in tourism and service industries continues to soar.
Tenants were more likely to miss payments in major cities that rely heavily on the tourism, entertainment and restaurant industries that used to be the lifeblood of the cities
RealPage also found Los Angeles, Seattle and New York each recorded spikes in missed rent payments.
Skipped payments were up by 4.4 percent in the City of Angels, while in New York, which endured one of the longest lockdowns nationwide, an additional 2.9 percent of renters failed to pay last month compared to in September 2019.
Researchers said tenants in these cities faced the double disadvantage of high unemployment coupled with high rent and living expenses.
‘There’s more stress in hospitality-focused and expensive markets,’ said Greg Willett, chief economist at RealPage, according to Bloomberg.
‘The wild card in everything is what happens in the economy and what happens in the economy is dependent on what happens with the pandemic.’
Nationwide, RealPage found 7.8 percent of all apartment renters didn’t pay their September rent, up from 6.3 percent who missed payments in September 2019.
The research also looked at the trend in rent collections in terms of property type.
It revealed people living in lower-tier properties were hardest hit while people living in upper-end and mid-range apartments were less affected and more able to keep paying rent.
While 6.9 percent of renters in Class A (upper end) and 6.1 percent in Class B properties (mid range) skipped rent payments, around double (12.7 percent) the proportion of people in Class C projects (lower-tier properties) missed payments last month.
Separate research from RealPage last week found rent has plummeted in high-cost cities including New York, San Francisco, Los Angeles and Boston as many fled their apartments and moved to the outskirts in the height of the pandemic
Areas that were less popular in pre-pandemic times have seen a surge in annual effective rent as demand for homes in the likes of Riverside, Sacramento and Memphis is on the rise
The research comes on the heels of separate research from RealPage last week that showed the cost of rent has plunged by around 10 percent in major cities such as New York City and San Francisco as a rise in working from home has sent Silicon Valley workers to cheaper areas and more than 12,000 potential renters fleeing the Big Apple.
The analysis revealed the biggest changes in effective asking rents, factoring in concessions from landlords, across different metro areas between the third quarter of 2019 and the third quarter of 2020.
It showed rent in San Francisco has been hardest-hit by the fallout from the coronavirus pandemic, plummeting by a staggering 11 percent in the third quarter of 2020 compared to the same time last year.
This has been driven in part by an exodus of Silicon Valley workers out of the notoriously expensive Bay Area as several of the tech giants have extended their remote working policies until at least 2021.
New York City rent has also taken a tumble by 8.5 percent, as residents fled the Big Apple when it became the virus epicenter of the world and many office workers have not yet returned instead opting for remote working from lower-cost areas.
This has meant areas that were less popular in pre-pandemic times have seen a surge in rent with a rise in demand for homes in the likes of Riverside, Sacramento and Memphis driving up prices in the areas.