Traffic and Leases Continue Week-Over-Week Improvements During Pandemic
As April drew to a close, most of the country was still in lockdown mode. But we have begun to see some states start to lift the restrictions they put in place five to six weeks ago.
And although most of us contend it will be a while before things return to normal – or something resembling our former days – new data from Radix shows that the apartment industry is finding its footing as it relates to the leading indicators of traffic and leases.
During the week ending on April 29, both traffic and leases increased on a national basis when compared with the preceding seven days. This was the latest in a series of week-over-week improvements for these stats after they reached a low point four weeks ago.
This trend suggests the worst may be over when it comes to these two metrics. As states continue to open, these numbers should continue to inch up, though most likely concessions and rent discounts will remain in order to attract prospects to properties.
With that being said, let’s get to the major takeaways from the week ending on April 29:
- Traffic and leases were up 9.4% and 9.5%, respectively, WoW, but they were still down 51.2% and 29.4%, respectively, YoY. For context, it is worth remembering that leases were down 50% YoY just four weeks ago.
- The national same-store occupancy rate stood at 93.27%. That’s down 0.11 percent from one week earlier and a full 101 basis points from the same time last year. The metros with the largest YoY declines were Orlando (-2.66%), San Diego (-1.94%) and San Francisco (-1.86%).
- The national same-store leased rate was 94.69%, up 0.01% from the preceding week but down 1.03% YoY. The metros with the biggest YoY declines were Washington D.C. (-2.01%), Las Vegas (-1.69%) and San Antonio (-1.68%).
- At $1,815, the average net effective rent in the U.S. was down 0.5% from one week earlier but was still 0.3% higher than it had been at the same time last year. That we could still see a positive YoY comparison after six weeks of a pandemic is a testament to the strong rent growth we have seen in the last decade in most markets.
I hope you continue to check our website as the pandemic continues, as I will be providing weekly updates of these stats. As always, I wish you, your families, your colleagues and your residents’ health and safety.