10 Things to Know About NAA’S 2021 Income & Expense Survey

By Rahimat Emozozo |

October 27, 2021 |

Updated November 24, 2021

2 minutes

NAA’s 2021 Income & Expense Survey (IES) revealed how hard the apartment industry was hit across income and expense categories in 2020 despite the strong recovery apparent in 2021.

  1. Total revenue, measured as a percent of Gross Potential Rent (GPR), fell nearly 200 basis points from 2019 while operating expenses rose 60 basis points.
  2. Average Net Operating Income per unit fell 3.3% year-over-year, the first decrease since 2010 in the aftermath of the Great Recession.
  3. Rent revenue dropped 1.2 percentage points, additionally ancillary revenue also declined by 0.7 percentage points.
  4. Economic losses increased across all categories, up 1.2 percentage points, and are at their highest level since 2013 at 8.7%. Delinquencies rose because of financial hardships among residents who lost their jobs, particularly those in the lower-paying services sector.
  5. Collection losses reached its highest level since 2003. Across markets, losses to concessions and vacancies were apparent.
  6. Operating expenses were impacted by apartment wear and tear as residents were home 24/7 for extensive periods of time. Total operating expenses increased 2.6% from the prior year on a per-unit basis.
  7. Insurance costs per unit were increasing before the pandemic but skyrocketed in 2020, up nearly 19%.
  8. Repair and maintenance increased by 0.2 percentage points of GPR. In addition to apartment wear and tear, personal protective equipment and cleaning and sanitation supplies also added to the repair and maintenance line.
  9. Capital expenditures fell by 0.4 percentage points as major projects were put on hold to control expenses in an uncertain environment.
  10. Turnover rates averaged 47%, the lowest in the survey’s history and well below historic averages. More apartment residents decided to renew, either month-to-month or lock in their current rental rate longer term.


Rahimat Emozozo is the Research Assistant for NAA.