This is a narration of our weekly Rent and Operating Trends Report.
The Consumer Price Index met economists’ expectations last week and inflation cooled modestly. Prices grew at an annualized rate of 3.4% in the 12 months ending in April, marking the first time since last December that annual inflation dropped. With that said, I do not expect the Fed to alter its path of monetary policy and we will likely see the first rate cut in Q3.
Multifamily fundamentals had another good week last week. The leading indicators, traffic and leasing, were flat for the second week in a row, but occupancy and rent ticked upward as the key performance metrics continue to grow throughout Q2. If we have reached the high-water market for traffic and leasing for the year, it would mark a significant slowdown from last year. Traffic peaked at 9.2 tours per property nationwide at the end of May last year. We are currently a full tour per property behind last year’s pace. Leasing topped out at 3.1 new leases per property last June, roughly a half lease per property above last week’s average.
We will be launching our latest round of rent, occupancy, and revenue per available unit forecasts later this week. If you’re interested in our national or metro level forecasts, please reach out and we would be happy to share them!
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https://bit.ly/Radix_Website
Explore our webpage for more insights and resources:
https://bit.ly/Radix_Website
