Rent and Operating Trends – Week of April 16th 2023

Key Takeaways – Data as of 04/16/2023

Traffic and Leases:

• Traffic increased marginally nationwide last week as the leading indicator continues to show signs of strength for multifamily.
• While the weekly data is important to show real time changes in our industry, looking at the annual growth also provides perspective. Over the past 12 months, Orlando and Riverside CA have added almost 2 tours per property per week. Leasing has also increased in each market, and the average property is signing roughly a half lease per week more than this time last year.
• Orlando ranks as one of the best markets in the nation, averaging 3.2 new leases signed per property per week. Nearby Tampa leads the nation with 3.5 leases signed per property as of last week.

Occupancy and ATR:

• The nationwide occupancy rate fell 1 basis point last week to 94.33%.
• While Charleston and Houston have been performing well from a traffic and leasing perspective, their occupancy rates are among the lowest in the country. As significant new supply comes online, especially in a market like Charleston where new deliveries had been muted in past years, the occupancy rates will likely continue to struggle. Demand is there in both markets, but it will take some time for new supply to be absorbed.

Net Effective Rent:

• Net effective rent increased 10 basis points last week nationwide.
• Gains were once again led by Chicago. While Chicago has historically been the most affordable of the gateway markets, it has surpassed Washington D.C. in average NER.
• Tampa had a strong week last week, as NER increased 50 basis points. While rents are still down year-over-year in Tampa, the weekly increase is a strong indication of continued demand, following one of the fastest decelerations in rent in the nation last year.