Rent and Operating Trends Data – July 18th

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This week’s rent and operating trend data indicate positive growth, as all our key metrics are up week-over-week. Occupancy and leased rates both bounced back 10 basis points after last week’s dip. National average NER jumped up 0.6% WoW, continuing the streak of uninterrupted weekly NER gains since mid-December. With this streak now seven months long, its endurance will be tested as national rents climb further into new highs, having fully recovered from pandemic losses. Leading indicators remain strong, and while we remain ever vigilant for signs of cooling in the market, the few we have seen have proven ephemeral.

 Key Takeaways – Data as 7/18:

  • Traffic and Leases: National weekly traffic is 10.1, up 5.7% this week, gaining back well over half of the ground lost in last week’s 9.8% dip. National weekly lease rate, at 3.1 signed agreements, is up a more modest 1.4% this week, leaving a significant amount of room to recover still after last week’s 9.6% dip.
  • Both metrics are down 14% since their highs in mid-April. While this suggests that the peak of the rental market boom has passed, rates remain strong with ample renter interest in multifamily housing.
  • Occupancy and Leased Percentage: Occupancy and leased rates are up 10 bps each this week. The National leased rate, at 97.5%, has fully recovered from last week’s dip, while the national Occupancy rate, and 95.9%, still has another 10 bps to recover.
  • San Francisco is up the most in Occupancy rate MoM, with a gain of 0.8%.
  • Los Angeles, up 0.7%, is the leading metro in monthly Leased rate gains.
  • Net Effective Rent: National average NER, up 0.6% this week, is now at $1,808. Rents are up 3.3% month over month and 1.5% from the beginning of the pandemic.
  • Studio floorplans have finally gone positive year-over-year, rising to $1,581. However, they are still down nationally almost 6% from pre-pandemic highs, while other floorplans have fully recovered. This suggests that the pandemic has left an enduring shift in living preferences towards more spacious units.
  • San Jose is up the most MoM with a gain of 5.2%, followed closely by Tampa, Austin, Orlando, and Raleigh, all with gains of 5%.

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