Rent and Operating Trends – Week of February 19th 2023

We are excited to announce our 33^rd market opening in Radix Research. The Colorado Springs MSA opened in our research platform this week as we continue to expand our market coverage. As our data ecosystem grows we would like to thank all our clients and data contributors for their help in growing our presence across the country. We continue to open new markets and submarkets on a regular basis and will keep you posted as new geographies become available within Radix Research.

The U.S. economy continues to perform well as we progress through 2023. Later this week we will get a closer look at how last year concluded from an economic output perspective as the second estimate of Q4 GDP is scheduled to be released Thursday. Expectations are for another strong read, similar to the report in January. While oil prices have remained relatively range bound for the past 5 months, gasoline prices have begun to creep upward from their late December lows. With inflation continuing to run higher than expected, a significant rise in gas prices could again hurt the consumer through the spring and summer. I don’t expect gas prices or inflation to return to last year’s levels, however both metrics are important to watch as they have a larger effect on the general economy and consumer activity.

Multifamily fundamentals were mostly flat last week, as the early year momentum has stalled. However, the slowdown in growth does not mean that the prime rental season won’t be a strong one. In past years we have seen leasing activity, occupancy and rent growth slow in February before accelerating once again in March and beyond.