While there is plenty of warranted speculation on the slowing economy and the potential for a recession, the employment market keeps chugging along, continuing its steady recovery with very strong job growth. Roughly 390,000 new jobs were added in May, exceeding economists’ expectations. The April jobs report was also revised to 436,000 new jobs, and the unemployment rate remained at 3.6%. Inflation and supply chain issues continue to plague the economy, but the incredibly tight employment market will likely lead to a soft landing as the economy cools. Companies across industries are still struggling to find employees at a wide variety of talent and pay scales. This will likely indicate a very shallow and short recession, if we even have a recession at all.
Multifamily fundamentals recorded another strong week last week, although traffic fell ever so slightly for the first time in months. As we approach the final few weeks of the prime rental season, I expect leading indicators like traffic and leasing to continue weakening. Overall demand remains high, and new supply, especially in popular sun belt markets, is not keeping pace. The multifamily industry will continue to see solid performance, albeit at decelerating rates.
Key Takeaways – Data as of 6/5/2022:
Traffic and Leases:
Occupancy and Leased Percentage:
Net Effective Rent:
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