This is a narration of our weekly Rent and Operating Trends Report.
The economy has stayed mostly unchanged through the first half of 2024, as employment outperformed, and inflation and interest rates have remained elevated. The second half of the year will likely be characterized by a series of “wait and see” situations. When will the Fed cut rates? How many cuts will there be? Will the job market remain hot? What will be the economic impact of the upcoming election? Without any major dark clouds on the horizon, but also no major catalysts for growth, I suspect the second half of the year to be fairly similar to what we’ve experienced in the economy thus far this year.
The multifamily industry is beginning its mid-summer plateau as the leasing season is mostly behind us. Occupancy reached 94% nationwide a few weeks ago, but it was short lived, and with last week’s minor decline, the national occupancy rate once again has a 93 handle. Leading indicators have been flat for the past few weeks and will likely stay that way through the summer. Net effective rents continued to grow last week, but rent is a lagging indicator. NER may continue to increase for a few more weeks, and then flatline with the other key performance metrics.
For more in-depth analysis on the first half of 2024, be sure to look for our 2024 Mid-year review and Second Half Outlook, which will be published in the next few days.
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Explore our webpage for more insights and resources:
https://bit.ly/Radix_Website
