This is a narration of our weekly Rent and Operating Trends Report.
As the U.S. economy continues to defy expectations both from a strong employment market and a persistent inflation perspective, economists are asking what is driving these trends. Many point to a recent report from the Congressional Budget Office indicating that more than 3 million immigrants entered the U.S. last year, well above recent years and projections. The labor force needs workers, as the data has shown, with more and more jobs being created, while the unemployment rate has stayed steady and even increased slightly. However, with more jobs being created and wages increasing modestly, more workers are able and comfortable consuming. This is leading to elevated inflation figures and likely a delay in any interest rate cuts from the Federal Reserve.
Apartment fundamentals are steadily improving, although the divergence between the leading indicators; traffic and leasing, and the secondary indicators; occupancy and rent, is continuing to widen. Leading indicators have been increasing slowly this year, while occupancy has been growing at a much steadier pace. The number of units available to rent is also improving and is the only key indicator tracked by Radix that is in better shape than it was a year ago. This data continues to point toward the notion that residents are renewing leases at a higher rate, shopping around for fewer apartments and staying put, after several years of elevated movement.
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Explore our webpage for more insights and resources:
https://bit.ly/Radix_Website
