US Commercial Property
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Government support will prevent surge in rent arrears

Jobless claims have reached 26 million, but by the end of last week the share of apartment tenants making a full or partial rental payment in April was down by just four percentage points compared to usual. That demonstrates tenants are still incentivised to make rental payments when they can. With enhanced unemployment insurance payments starting to arrive, rental arrears will not see the same surge that has been recorded in some other sectors.
Matthew Pointon Senior Property Economist
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US Commercial Property Update

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House price growth accelerated in March, reaching a record high of 13.9% y/y on the FHFA measure. But there are signs that the boom in prices is now weighing on housing demand and activity. New home sales dropped 5.9% m/m in April, and a steady decline in mortgage applications for home purchase points to a further moderation in sales over the next couple of months. That will help take some of the heat out of the market and bring house price growth back down to earth by the end of the year.

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