Historically, affordable housing has maintained stability during economic recessions. This asset class has better occupancy rates and more stable rents when economic activity declines.
Whether this trait will hold up during the COVID-19-triggered recession is uncertain, though. This downturn is unique, with many affordable housing tenants losing their jobs in numbers not seen before. Federal relief will play a significant role in stabilizing this market, and will be critical to the stabilization of affordable and workforce housing developments.
Some landlords are educating tenants and providing them with health and safety resources along with financial guidance for relief benefits.