Chart Of The Week – June 18th 2023

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. Baltimore leads all markets with a closing ratio of 41%. The spillover effect from markets like Washington, Phoenix, Austin, and Denver are helping neighboring markets like Baltimore, Tucson, San Antonio and Colorado Springs. On the other hand, the markets with the weakest conversion ratios are either large gateway markets or west coast secondary markets. As outmigration has plagued the coastal markets, there is additional availability in many apartments. Renters have a greater selection to choose from, and concessions have been on the rise. Prospective renters will often shop around for better deals, leading to fewer leases signed from the same number of tours.