Chart Of The Week – May 7th 2023

Multifamily leading indicators have been off to a strong start thus far in 2023.

Both traffic and new leases signed have been steadily increasing, and after bottoming out in late January, the closing ratio has been growing quickly as well. While all three metrics remain slightly below their levels from this time last year, this year’s growth trajectory is stronger than it was a year ago. While demand drivers in 2021 and 2022 were somewhat skewed by COVID and the monetary stimulus in the market, this year’s behavior reflects a more normal leasing pattern of seasonality. I anticipate continued growth in traffic, leasing and conversion ratios for the remainder of the second quarter, before a leveling off in late summer and into the fall.