Single Family Build to Rent (BTR) homes are one of the fastest growing property sectors within residential. Demand in recent years has been elevated both from a demographic perspective as well as a result of COVID and the demand for more space.
Economists will be focused more on the qualitative information coming out this week than the quantitative data being released. The Kansas City Fed hosts its annual symposium in Jackson Hole, and Chair Jerome Powell will be delivering the keynote address on Friday.
This week we are focusing on Boston, one of the better performing markets thus far in 2023. Looking back over the past two years, Boston’s rent growth and occupancy levels trailed the national average, as the market lagged its peers during COVID and in its immediate aftermath.
Inflation rose modestly last week, as the July CPI checked in at a 3.2% annualized rate, slightly above the June read, but below analysts’ expectations. While I don’t think this will be enough of a move to force the Fed to raise rates again, the rest of the yield curve continues to increase.
One of the most consistent headlines in multifamily over the past 24 months has been declining occupancy. Of the 33 MSAs tracked by Radix Research, none have experienced year-over-year occupancy growth.
Web scraping has revolutionized data extraction in the multifamily industry, providing an easy way to obtain rent information for certain properties and floor plans.
A wave of multifamily maturities has been building for the better part of three years. Loans originated in late 2020 and 2021, held historically low initial interest rates, and experienced some of the fastest rent growth in history during their first year.
Closing ratio is a key metric that tracks the leasing efficiency of a property or multifamily market. The closing ratio is the number of leases signed per week compared to the traffic seen at a given property. Over the past few years, closing ratios have followed a two peak and two trough per year trend.
As multifamily fundamentals have been deteriorating nationwide, performance in the second largest U.S. city has been mediocre in recent months. While many key operating metrics declined over the past 12 months, Los Angeles is holding its own and its’ declines are modest L.A. is not growing like its Gateway peer markets in the Northeast and Midwest, yet it’s also not declining like San Francisco.
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