With the majority of U.S. states adopting shelter-in-place mandates during the month of March to fight the nationwide spread of the novel coronavirus, unemployment claims began pouring in, reaching 9.9 million by early April.
Yardi® Matrix assessed the industries affected most by the COVID-19 closures and which of the country’s Top 50 metro regions will likely by most affected by closures and slowdowns in those sectors. This special report was completed April 7, so be aware that the most recently reported unemployment numbers are now higher.
The segments expected to experience the highest job losses are lodging and hospitality, retail and mining/logging/construction.
Based on the Matrix analysis, Las Vegas, coastal Florida and Houston are most likely to be hit hard by job losses. Florida had three metro regions on the list: the southwest coastal portion of the state, followed by Fort Lauderdale and Orlando. Each is heavily dependent on one more of the most affected employment categories. The Las Vegas and the Florida economies depend on travel and tourism, while Houston’s economy remains driven to a large degree by energy.
“By the time all is said and done, every industry and metro will be impacted by the dramatic decline in economic activity,” states the report. Estimates vary as to the exact percent GDP will decline for Q2 of 2020, but some forecasters have predicted it could be as high as 34 percent.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email matrix[.]yardi.com, call 480-663-1149.
Yardi® (yardi.com) develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide.