This is a narration of our weekly Rent and Operating Trends Report.
The employment market has long been the backbone of the U.S. economy, as strong job gainscoming out of the pandemic fueled significant macro growth. The national unemployment rate fell to the low three percent range, and some metro areas saw unemployment in the two percent range. While we are still adding jobs at a strong clip, unemployment has increased in each of the past three months. At this time last year, the unemployment rate was 3.5%. It is now 4.1%, and while that is still below the rate of full employment by historical standards, it shows that some cracks are beginning to emerge in the job market. Since last Friday’s employment report, severaleconomists have been calling for rate cuts, and the potential for a July rate cut is back on the table. I don’t think the Fed will lower interest rates this month, however, they could use the meeting to clearly lay the groundwork for a rate cut in September.
As anticipated, the multifamily industry was mostly flat last week. July is typically the beginning of the stable period in our sector, and most key metrics will remain flat for the next month or two. Fundamentals will likely decline beginning in the late third and early fourth quarters. Growth may continue in certain markets where demand outpaces supply, and oversupplied markets may see further softening, yet nationwide the apartment industry will be mostly flat.
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Explore our webpage for more insights and resources:
https://bit.ly/Radix_Website
