The 2024 presidential election is about 8 months away and political and fiscal issues are beginning to take center stage for the American consumer. The economy remains strong with steady GDP growth, a tight labor market and generally softening inflation, but issues including a government shutdown, international aid and foreign policy are becoming focal points.
In the wake of a higher-than-expected inflation report, the theme from many Fed Governors last week was patience in determining when the first interest rate hike would be.
It was a quiet week in the economy last week, and most indicators continued their slow and steady growth. All eyes will be on inflation this week from a quantitative perspective. From a qualitative perspective, many of the Fed Governors are slated to speak at various events.
In a rare interview on Sunday evening, Fed Chair Jerome Powell explained on 60 Minutes that the Fed is now planning its first interest rate cut since 2020. Most economists expected rate cuts in 2024, however it is abnormal for the Fed Chair to speak publicly on the matter, especially outside of a policy meeting press conference.
Will you be at NMHC this week? If so, come find us. Blerim Zeqiri, Brad Cribbins, Jay Denton, and I will be at the Apartment Strategies conference and the annual meeting. We would love to share what 2024 has in store for Radix and the multifamily industry.
Most of the apartment narrative has focused on declining rents and occupancy over the past 18 months, and for good reason. Since the peak in mid-2022 rent growth has softened significantly and fallen negative in most markets.
The Radix team will be at the NMHC annual meeting next week and we would love to see you there. If you’ll be in attendance please reach out. We will be sharing market insight and forecasts as well as upcoming product updates. We are also excited to open several new markets in Radix Research.
A lot has been discussed about the supply wave currently hitting the multifamily sector. It is true that we are at a four-decade high in terms of new multifamily deliveries, however demand remains strong in several markets, especially in the sunbelt.
The U.S. economy was thrown a slight curveball last week when the December Consumer Price Index came in higher than expected. Inflation increased at an annualized rate of 3.4% marking a modest uptick from previous months. Driving the growth was a 0.4% increase in the shelter index, which relates directly to the cost of housing.