Rent and Operating Trends – Week of April 23rd 2023

Key Takeaways – Data as of 04/23/2023

Traffic and Leases:

• San Jose and Charleston led all markets in traffic growth last week, as the average property in each metro added nearly 1 tour. Following behind were San Diego, Portland and San Francisco, all of which added a half tour per property on average.
• Leasing followed a similar trend with San Jose and Charleston also leading the nation.
• Chicago maintains the most average traffic per property with 12.3 tours per week last week, however San Jose recently reached the second spot in our rankings. Dallas and Houston maintain some of the highest traffic in the nation, but the rate of growth has stalled.

Occupancy and ATR:

• Nationwide occupancy increased by one basis point again last week.
• While occupancies in many markets are recovering slowly, several metros with significant new supply pipelines continue to see occupancy declines. Charleston, Phoenix, Charlotte and Raleigh all have been dealing with a glut of new units that has pushed occupancy downward, especially for high-end product.

Net Effective Rent:

• Net effective rent growth in the major gateway markets continues, as New York posted a strong weekly gain. Rents in the Big Apple were up 20 basis points last week and have increased 6.2% over the past twelve months. New York is the most expensive market in the country by a significant margin as San Francisco rents continue to fall.
• Washington, D.C., Chicago and San Jose are all in the top 5 markets for rent growth on an annual basis.
• Like occupancy, the markets with the worst performing rent growth are dealing with new supply hurdles. Las Vegas and Nashville rents fell 40 basis points and 20 basis points respectively last week. Both metros are also in the bottom five for annual rent growth, as NER has fallen by 6.8% in Las Vegas and 3.5% in Nashville.