This is a narration of our weekly Rent and Operating Trends Report.
Will you be at NMHC this week? If so, come find us. Blerim Zeqiri, Brad Cribbins, Jay Denton, and I will be at the Apartment Strategies conference and the annual meeting. We would love to share what 2024 has in store for Radix and the multifamily industry.
The economy chugs along with a strong foundation in employment and improving inflation metrics. The Personal Consumption Expenditures Index was released on Friday showing that prices have increased 2.9% from a year ago. The Fed prefers to watch the PCE, and this measure now sits within the target range for policy makers, as they mull the next step on interest rates. Fed officials will vote on monetary policy at their meeting this week and while few expect a change in rates at this meeting, many economists are speculating when the first rate cut will come. I believe the Fed will start easing monetary policy in the second quarter, but softer jobs numbers or lower inflation reports may accelerate the process for the first rate cuts since COVID.
Property fundamentals continue to improve in the short term, while annual growth remains negative for most key metrics. Occupancy is showing a similar trend to last year, and is holding firm, despite expectations of continued declines. Traffic and leasing are improving, indicating a potential early start to the 2024 leasing season.
Explore our webpage for more insights and resources:
https://bit.ly/Radix_Website
Explore our webpage for more insights and resources:
https://bit.ly/Radix_Website
