While most markets set records for rent and occupancy performance in 2021 and 2022, Miami led them all in net effective rent during one of the strongest periods in the history of our industry. However, as demand has cooled nationwide, the south Florida MSA’s rent and occupancy performance has also cooled.
The U.S. economy rests on solid footing following last week’s Fed meeting. Interest rates remained flat last week, and while the Fed may yet raise rates once or twice more this year, the end of the tightening cycle is clearly in view. Inflation continues to slow down, yet the consumer remains strong.
How efficient is leasing activity in your market? In this week’s Chart of the Week we look at the Closing Ratio, or the percentage of traffic that turns into a signed lease. The top 5 markets are all small secondary and tertiary markets in close proximity to a major gateway market or a fast growing secondary market.
For much of the past 10 years, Austin has been heralded as one of the best places to live and work due to its ideal mix of temperate climate, favorable business environment, cost of living, local political culture and talented workforce. From a population, employment, and economic perspective, the metro has been among the fastest growing.
As the Fed prepares for its upcoming meeting, the consensus on the immediate future of monetary policy remains split. Many economists are predicting another interest rate hike, as the employment market remains incredibly tight, and inflation has moved upward again in recent months.
Demand for multifamily housing is softer this year than it has been over the past six years. As we approach the end of the prime rental season, the leading indicators traffic and new leases signed have failed to reach their traditional high-water marks from years past.
While many markets have struggled with new supply and softening multifamily fundamentals, Chicago has risen to the top of the national rankings for nearly all major multifamily metrics. According to Radix, net effective rent is up 5.7% year-over-year as of early June, making Chicago the fastest growing rent market in the nation by a significant margin.
The U.S. economy, specifically the employment market, remains stalwart as growth continued in May. Roughly 340,000 new jobs were added last month, giving many economists hope that we may avoid a recession this year.
Last week we demonstrated the negative impact of falling rates combined with softening occupancy as markets struggling with new supply pressure have seen revenue per available unit (RevPAU) fall significantly.
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