This is a narration of our weekly Rent and Operating Trends Report.
As we approach the end of the second quarter there will be two key economic indicators released this week. The final estimate of Q1 GDP will be released on Thursday. First quarter GDP had initially been reported at a 1.1% growth rate but was revised upward to 1.3%. Many economists have been predicting a recession but have not given a hard timeframe on when the recession will begin. A weak final estimate of Q1 GDP could portend a downturn in the coming quarters. The May Personal Consumption Expenditures Index will be released on Friday. As the Fed’s preferred measure of inflation, this reading will give us a decent sense of where the Fed is heading at its upcoming meeting in late July. An annual inflation number in the 4-5% range will likely lead the Fed to raise rates another quarter percent.
Property performance was mostly unchanged through mid-June, although occupancy nationwide continues to fall. Traffic and leasing were flat last week, while NER grew modestly. We have yet to see a strong leasing season materialize this year, and I would expect to see fundamentals beginning to soften over the next six to eight weeks. A normal seasonal slowdown in the late third and fourth quarters would leave national apartment fundamentals in negative territory on an annual basis.
Explore our Research webpage for more insights and resources: https://bit.ly/RadixResearch
Explore our webpage for more insights and resources:
https://bit.ly/Radix_Website
