We are excited to announce some new changes to the Rent and Operating Trends Report beginning this week. Revenue per Available Unit (RevPAU) is a comprehensive apartment performance metric that combines net effective rent with occupancy to identify the total potential revenue given the number of operational units in a property, submarket or MSA. As property fundamentals have changed rapidly over the past 12 months, this metric is a single data point that captures the impact of two of the most important performance drivers in our industry and will give a clear overall picture of how the apartment market is performing as we navigate the turbulent waters ahead. We’ve also switched our net effective rent figures in this report to show our same store sample. We are thrilled that Radix’s data set is growing rapidly, and in light of the new properties being added to the sample each week, we want to show a comparison on a same-store basis for net effective rent. RevPAU will also be reported on a same store basis in these weekly reports. Our research platform continues to allow for both same store analysis and total sample analysis. Please reach out if you have any questions regarding the changes, we are excited to release these new enhancements as we move into Q4.
The personal consumption expenditures index indicated a modest uptick in inflation, as the August report showed prices rising 3.5% from last year. A slight increase will likely not be enough for the Fed to change course on interest rate policy, and we are still likely to see one more increase either in November or December. The 10-year Treasury rate continues its swift climb, and as of the beginning of October, the 10-year yielded 4.63%.
Multifamily performance continues to soften. Occupancy fell again last week and is testing the 94% threshold nationwide. Rents are down in most markets, and the declines in the worst performing markets are far more extreme than the modest increases in the few MSAs still seeing growth.
Key Takeaways – Data as of 10/01/2023
Traffic and Leases:
Occupancy and ATR:
Net Effective Rent:
Revenue Per Available Unit:
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