Revenue per available unit (RevPAU) combines net effective rent with occupancy for a single metric to analyze the strength of performance at the property, submarket and MSA level. Over the past 12 months, the leading markets for RevPAU performance are tertiary sunbelt markets and northern Gateway markets.
The U.S. economy awaits another Fed meeting, scheduled for Tuesday and Wednesday of this week. Most economists predict that the Fed will hold rates steady at the upcoming meeting, but it is far from an indication that the monetary tightening cycle has concluded.
Revenue per available (RevPAU) unit is a key metric in the multifamily industry that tracks the impact of both rent growth and occupancy for a given property, submarket or market. In recent months, rents and occupancy rates have both been declining, which has exacerbated the negative impact on RevPAU.
While Seattle is not commonly referred to as a Gateway market, its fundamentals often follow many of the tech-heavy Gateway’s on the west coast and in the northeast. As the multifamily industry cools amid significant new supply pressure, Seattle is once again trending like its peers. Traffic, overall occupancy, and occupancy growth are tracking in line with Los Angeles and Boston, while significant rent declines are tracking with San Francisco.
The U.S. economy continues its steady march forward, as most key indicators have maintained their recent trends. August job growth was strong once again, as the labor force added 187,000 new jobs. The unemployment rate increased to 3.8%, but some of the increase in unemployment can be attributed to the continuous growth in labor force participation.
The San Antonio market has been among the weakest performing MSAs in the nation over the past year, as a once hot apartment market has turned negative quickly. All key indicators lag the national average and are also negative on both short and long-term bases.
Fed Chair Jerome Powell gave a very middle of the road speech last week at the Kansas City Fed’s Jackson Hole symposium. The leader of the central bank acknowledged that tightening monetary policy has had its desired impact on inflation, but also warned that inflation may come back, thus warranting further interest rate increases.