This is a narration of our weekly Rent and Operating Trends Report.
New home sales reached another low in April, as persistently high mortgage rates cut into for sale housing demand in a meaningful way. However, driven heavily by immigration, continued household formation and aging Millennials, overall housing demand remains strong. Thus, rental demand is elevated, helping to buffer the apartment industry as we begin to approach the end of the current development cycle. While there are still a historically high number of units under construction, with each passing month and each new community delivered, the new supply pressure is starting to ease.
Most apartment metrics were flat last week with the exception of occupancy and units available to rent. Renewals continue to be the highest priority for property operators, as traffic and leasing have shown steady indication that they will trail recent year highs. Rents and occupancy rates will likely oscillate from now until the end of the year. Our recent forecasts released last week point toward year-end national occupancy at 93.9% and annual rent growth of -0.9%.
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https://bit.ly/Radix_Website
Explore our webpage for more insights and resources:
https://bit.ly/Radix_Website
