The seven-day period ending on June 17 brought more good news for the apartment industry, according to our most recent data report.
The data reaffirmed the positive trends we saw during the preceding week, and it is becoming clearer that all the leading indicators are on the mend and are erasing year-over-year deficits. On a national basis and in most metropolitan statistical areas, traffic and leases are increasing week over week, which is leading to WoW increases in occupancy and leased percentage rates.
Net effective rents were also up WoW in eight of the 21 MSAs tracked by Radix during the week ending on June 17. The national net effective rent was $1,734; that’s down 20 basis points from the preceding week and down 4.5% from the same time last year. On a positive note, the WoW drop was smaller than the one during the preceding week.
With that background, here are some of the notable takeaways from the week ending on June 17:
- Nationally, traffic was up 6.3% WoW and down 19.8% YoY. During the week ending on June 10, the YoY was still behind at 22.7%.
- On a national basis, leases were up 2.2% WoW and down just 0.7% when compared with the same time last year.
- The national occupancy (92.85%) and leased percentage (94.75%) rates were up WoW by 12 basis points and 14 basis points, respectively. The YoY deficits for both metrics are getting smaller, and with positive trends in traffic and leases, we should see occupancy and leased percentage rates continue to gain strength across the country.
- As for individual MSAs, Miami, Riverside, Calif., and Tampa, Fla., saw the largest WoW increases in occupancy. Meanwhile, the West Coast is home to some of the largest YoY declines in occupancy, with San Diego (-3.32%), Seattle (-3.08%), San Jose, Calif. (-2.72%), San Francisco (-2.58%), and Los Angeles (-2.49%) all among the six markets with the largest annual declines. San Antonio (-2.91%) also is in the top six.
- The $3 WoW dip in the national net effective rent represented the smallest decline in weeks. MSAs with the strongest WoW gain in rent were Riverside (1.0%), Las Vegas (0.9%) and Phoenix (0.3%).