This is a narration of our weekly Rent and Operating Trends Report. After a highly volatile April, the economy remained turbulent at the beginning of May. High inflation led the Fed to increase interest rates by 50 basis points, which resulted in major sell-offs across the equity market. The Fed will likely continue tightening monetary policy despite the declining financial markets until inflation is brought back into a more normal range. While the stock market is making headlines, the employment market continues its strong growth, as roughly 428,000 new jobs were gained in April. Jobs were added across every major sector last month, and the unemployment rate of 3.6% indicates that the job market has returned to pre-COVID levels. If the employment market remains strong and inflation runs hot, the Fed will continue raising interest rates, which will likely lead to continued volatility in the stock market. Large funds may begin re-evaluating their allocations to different investment sectors, and given the recent strength and stability of multifamily, it would not surprise me to see additional inflows of institutional capital into our sector. Tune in to find out more information on multifamily dynamics during the week of May 8th.
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