January 2020
Apartment Market Tells Two Tales in 2020

Despite the COVID-19 pandemic, subsequent business shutdowns, and general political unrest, multifamily rents nationwide were relatively flat, declining only 0.8% year-over- year according to Yardi Matrix. December rents averaged $1,410 per month across the country. December occupancy stood at 95.5%, a shade under the 95.6% reported a year earlier.

The continued migration from urban to suburban has caused a divergence in performance across markets. There was an exodus from gateway markets as Millennials began to buy homes in the suburbs or moved out of urban areas to be closer to family and have more space. Suddenly, paying $3,500 a month for a small, secluded studio in a San Francisco high rise became less appealing as people were able to work remotely and pay half that rent 30 minutes away. Effective asking rents in San Francisco plunged 20% last year, according to data from RealPage. Rent declines in San Jose and New York were about 15%. Other major urban markets like Seattle, Boston, Los Angeles, and Washington D.C. also experienced the same downward trend.

On the other hand, less expensive and less dense markets like the Inland Empire and Sacramento saw healthy rent growth of 7.3% and 6.1% respectively. CALCAP’s primary markets in the Southwest also experienced nice rent growth. Phoenix was up 4.6%, Fort Worth 4.3% and Las Vegas 3.8%. In Albuquerque, rents grew 8.3% last year making it one of the fastest rent growth cities in the U.S. Yardi Matrix predicts 2021 will be better than 2020 but will not be “without tumult." Gateway markets will continue to struggle, and the industry will continue to deal with weaker rent collections and eviction moratoriums.

Overall, the CALCAP apartment portfolio outperformed the markets and averaged rent growth of 7.66% in 2020 and ended the year with occupancy of 96.3%. We were able to average 96.55% on rent collections and maintained resident retention at just below 70%.

If you would like us to analyze your portfolio or talk to us about managing your property, please feel free to reach out. You can also visit our property management company at

Edward M. Aloe
Founder and CEO
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Latest Headlines...

Biden’s executive order will extend foreclosure moratorium

President will work with CDC, HUD and VA on immediate extension

Biden had previously outlined strategies to mitigate foreclosures and evictions in his housing agenda, which included a Bill of Rights that will prevent mortgage servicers from advancing a foreclosure when the homeowner is in the process of receiving a loan modification.

The agenda also outlined plans to build upon the Obama-Biden Administration’s Protecting Tenants at Foreclosure Act, that includes a law prohibiting landlords from discriminating against renters receiving federal housing benefits.

COVID couldn’t stop the U.S. housing market in 2020

However, existing homes sales report shows we are still in make-up demand mode

The COVID crisis of 2020 was responsible for a lot of abnormal metrics in the housing market. Data lines that are typically very sticky, i.e. take months to move significantly in either direction, took waterfall dives, and then made parabolic recoveries — the existing home sales numbers are an extreme case of this. 

When I think about the 2020 housing market, the big take-home is not the V-shape recovery in many of the housing metrics or even the hotter-than-expected price growth. The big take-home is that 2020, despite the COVID crisis, began a period in our country (the years 2020-2024) when we have both the best housing demographics ever combined with mortgage rates low enough to keep housing stable for years to come.

Texas Apartment Demand Expected to Rise as Tech Giants Move In

Over 126,000 new apartments are under construction in Texas metros, with half a million new units delivered over the past decade.

A total of 126,900 new apartments are under construction across the state of Texas, according to Yardi Matrix. Of the state’s major metros, the Dallas metro has the most apartments expected to be delivered at 49,000, with 11,400 to be delivered in the city itself. Financial services company Charles Schwab announced its move to Dallas in 2019, and a few months ago real estate brokerage CBRE announced that it would move its global headquarters to Dallas from Los Angeles.

The Austin metro has 31,000 new apartments in its construction pipeline, of which 22,600 are located in the city, the strongest supply pipeline in any of the major Texas metros. Oracle is set to move to the Austin area, and Tesla is expected to open a new branch set to create 5,000 new jobs.

On the lighter side....
About CALCAP Advisors
California Capital Real Estate Advisors, Inc., and its affiliate entities (CALCAP Asset Management I & II, CALCAP Properties, CALCAP Lending, and CALCAP Senior Healthcare I, collectively known as "CALCAP"), is a California based investment company founded and 2008 and headquartered in Pasadena, California. The Company sponsors alternative real estate investment opportunities focused on demographically driven housing. CALCAP has been able to consistently provide both individual and institutional investors with outstanding returns over the last 10 years. The Company's core strategies look to actively create alpha for investors while managing risk. CALCAP currently has over $350mm in Assets Under Management. To learn more visit
Social Mission
CALCAP has created the CALCAP CARES program to encourage employees to find a way to give back to the neighborhoods where we invest. CALCAP has created "GiveTime4Autism" as its initial program which will allow employees the ability to donate unused vacation and sick days for a very worthy cause.
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Edward M. Aloe, Founder & CEO
(626) 229-9057

Patrick A. Wakeman, Principal
(858) 764-4890

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(602) 419-3381

Greg Blix
Director of Investor Relations
(805) 896-8500

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Mark A. Mozilo, Principal
(626) 229-9056
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