NAA President & CEO talks about the pandemic’s impacts on the industry and residents on Fox Business.
NAA President and CEO Bob Pinnegar joined FOX Business to discuss the deep impact the COVID-19 pandemic has had on the apartment industry and renters nationwide. The interview came on the heels of a Congressional relief package passed and signed into law in late 2020, which included the first dedicated rental assistance funds of the ongoing, 10-month pandemic. As Pinnegar notes, while the funds are a life preserver for struggling renters and an important down payment toward the $70 billion in rental debt, the industry is still grappling with $45 billion in losses and struggling to make ends meet. And, despite the popular image of the wealthy property owner, 53 percent of the 41 million rental units nationwide are owned by small, mom-and-pop operators.
Pinnegar also shared his ongoing concern for the long-term health of the industry. Despite a lack of substantial relief for the industry, rental housing providers continue to pay property taxes, meet financial obligations and shelter 40 million Americans. While providers have been resilient thus far, rental housing is a low-margin business. Only 9 cents of a dollar is considered “profit,” and the remaining rent funds are dedicated to the mortgage, operating costs, taxes, maintenance and other critical expenses. Because of this, many providers are struggling to make ends meet.
Watch the full interview and get NAA’s take on where renters will ultimately settle post-pandemic.