Chart Of The Week – June 11th 2023

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. Prior to COVID-19, nationwide average traffic would routinely reach 12 tours per property in the second quarter of the year. This year, we have not yet reached an average of 10 tours per property. Same can be said for leasing, as the average property would typically sign roughly 4 new leases per week at the height of the rental season. This year, we have struggled to reach 3 new leases signed per week. There are some markets that are outperforming, such as Chicago and a few Texas markets, however, we now have evidence to back up the discussion that has been brewing in our industry for the past few months. Demand has weakened, not just compared to 2021 and early 2022, but compared to pre-COVID years as well.