This is a narration of our weekly Rent and Operating Trends Report.
Given the potential for a significant change in economists’ expectations heading into last week’s releases, the domestic economy has been relatively steady over the past several days. The CPI was released last Wednesday showing a modest decline in inflation. The Fed announced later that day that they expect to cut rates once this year, although that is once again subject to change if inflation or the job market changes drastically. However, the market is taking the Fed’s commentary as a positive. Treasury yields are down about 20 basis points since last Monday, and the equity markets have performed well, with the S&P 500 gaining 2.4% in the past week. While some were expecting significant volatility in the economy, last week’s numbers and commentary were mostly stabilizing.
Multifamily continues its steady journey, but last week marked a significant milestone, as the national occupancy rate returned to 94%. While this threshold by no means marks the immediate return to growth for all multifamily markets, it meaningfully represents the stable growth in housing demand. Leading indicators were once again flat last week, and rent growth continued its slow march upward, as the national average net effective rent increased another 10 basis points.
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