This is a narration of our weekly Rent and Operating Trends Report.
It will be a big week for inflation and monetary policy, as the May CPI report comes out on Wednesday. Later that day, the Fed will conclude its June policy meeting with Chair Powell giving a press conference to discuss the current state of the economy and interest rates. There is very little chance of an interest rate cut this week, but Powell’s commentary combined with the Fed’s dot plot, which shows how each voting member feels on interest rates, inflation and other key metrics, should shine light on when we may see the first cut. Market sentiment will be reflected in the movement of treasury yields later in the week. Strong inflation will likely weaken the chances of 2024 rate cuts, and send treasury yields upward.
Multifamily fundamentals were mixed last week as the leading indicators were flat or declined slightly, while rent and occupancy increased modestly. Traffic and leasing have likely peaked for the year, and I’ll be focused on how far these metrics drop over the next six months as a measure of continued demand for multifamily. Rent and occupancy will rise for the next few months and then begin their decline for the remainder of the year.
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Explore our webpage for more insights and resources:
https://bit.ly/Radix_Website
