Chart of The Week – September 17th 2023

Revenue per available (RevPAU) unit is a key metric in the multifamily industry that tracks the impact of both rent growth and occupancy for a given property, submarket or market. In recent months, rents and occupancy rates have both been declining, which has exacerbated the negative impact on RevPAU. On a year-over-year basis, RevPAU is down nearly 5% nationwide, a far cry from the 25% year-over-year increase we saw less than two years ago. Keep an eye on RevPAU as markets across the country continue to cool in the coming months. Not only are rents going down, but as new supply is continuously added, occupancy rates, and thus RevPAU will also be falling.