Occupancy Firms as Annual Gaps Continue to Narrow

Occupancy Firms as Annual Gaps Continue to Narrow

The national multifamily picture kept improving in the week of July 12, with occupancy firming to its best annual comparison in recent weeks. As of July 12, the average U.S. occupancy rate was 94.37%, up 9 basis points from the prior week and down just 17 basis points from a year ago, the narrowest annual occupancy gap in the recent stretch. The leased percentage was 96.45%, up 8 basis points on the week and down 78 basis points from last year.  Leasing velocity held steady. The average number of leases signed was 2.1 per property last week, flat from the prior week, and down 0.6 per week compared to a year ago. The annual gap was essentially unchanged from the prior week, so demand is holding its ground against last year rather than gaining, even as occupancy continues to firm. Net effective rent edged higher. NER rose 0.1% on the week to $1,760, and annual NER growth for new leases improved to negative 1.5%, up from negative 1.6% the prior week. Rents are grinding back toward last year's level, with the annual gap narrowing for a second straight week. The range across the country remains wide, with several coastal markets posting solid positive annual growth while much of the Sun Belt is still working through negative territory. RevPAU was $1,661, up 0.2% on the week, with the annual comparison improving to negative 1.7% from negative 1.9% the prior week. With occupancy firming and rents edging up together, revenue per available unit is making steady progress against last year. For operators, the read this week is constructive: the improvement that resumed after the July 4 holiday is holding, and the year over year comparisons keep tightening as we move through July. Explore our webpage for more insights and resources: https://bit.ly/Radix_Website

Metrics Hold Steady as Annual Gaps Narrow Into July

The national multifamily picture held steady in the week of July 5, with the gap to last year continuing to close on most metrics. For much of the spring, the annual comparisons had been improving week by week as this year's numbers caught up to last year's. That progress stalled briefly the week prior, then resumed this week. As of July 5, the average U.S. occupancy rate was 94.28 percent, up 5 basis points from the prior week and down 25 basis points from a year ago. The leased percentage was 96.36 percent, up 8 basis points on the week and down 81 basis points from last year. Occupancy is strengthening, and both annual gaps closed slightly versus the prior week. Leasing velocity held its ground through the holiday week. The average number of leases signed was 2.1 per property, roughly steady on the week and 0.5 below a year ago. That annual gap narrowed from 0.7 the prior week, so demand kept closing the distance to last year even across the July 4 stretch, when activity typically softens. Net effective rent was flat at the national level, holding at $1,756 on the week, while annual NER growth for new leases improved to negative 1.6%, up from negative 2.0% the prior week. Rents are steady, and the annual gap resumed narrowing after widening last week. The range across the country remains wide, with several coastal markets posting positive annual growth while much of the Sun Belt is still working through negative territory. RevPAU, was $1,656, up 0.1% on the week, with the annual comparison improving to negative 1.9% from negative 2.3% the prior week. Revenue per available unit is closing its annual gap right alongside rents. For operators, the read this week is steady and constructive: occupancy is firming, leasing held through the holiday, and the year over year comparisons are tightening again as we head into July. Explore our webpage for more insights and resources: https://bit.ly/Radix_Website

Rent Momentum Cools as Annual Gap Widens Again

The national multifamily picture settled back this week after last week's jump, with occupancy holding roughly steady. As of June 28, the average U.S. occupancy rate was 94.24%, essentially flat on the week and down 29 basis points from a year ago. The leased percentage was 96.28%, unchanged on the week and down 93 basis points from last year.  Occupancy is holding the line, but the small improvement that had been building through mid-June paused this week.  Leasing velocity held its ground. The average number of leases signed was 2.2 per property last week, flat from the prior week, and down 0.7 per week compared to a year ago. The annual gap was steady with the prior week, so demand is neither gaining nor losing ground against last year's pace as we close out June. Net effective rent gave back some of last week's improvement. NER stood at $1,756, and annual NER growth for new leases slipped back to negative 2.0%, after narrowing to negative 1.0% the prior week. Now, some of that swing reflects last year's stronger numbers, which set a higher bar, but the honest read is that the sharp rent step-up we flagged last week didn't carry through. The range across the country remains wide, with several coastal markets still posting positive annual growth while much of the Sun Belt sits in negative territory. RevPAU was $1,655, with the annual comparison widening to negative 2.3% from negative 1.3% the prior week.  With rents softening, revenue per available unit followed them lower year over year. For operators, the read this week is that June's late momentum cooled, though occupancy and leasing velocity both remain steady heading into July. Explore our webpage for more insights and resources: https://bit.ly/Radix_Website

Rents Post Strongest Weekly Gain as Annual Gap Narrows

The national multifamily picture strengthened in the week of June 21, with momentum building across nearly every metric. As of June 21, the average U.S. occupancy rate was 94.32%, up 6 basis points from the prior week and down just 25 basis points from a year ago, the narrowest annual gap we have seen in recent weeks. The leased percentage was 96.37%, up 6 basis points on the week and down 86 basis points from last year. Occupancy continues to firm, and the gap to last year keeps shrinking.  Leasing velocity held its ground and continued to close the distance to last year. The average number of leases signed was 2.2 per property last week, flat from the prior week, and down 0.6 per week compared to a year ago. That annual gap narrowed again from 0.7 the prior week, another small step in the right direction as we move deeper into the summer leasing season.  Net effective rent is where this week's story really lands. NER rose 0.8% on the week to $1,770, the strongest weekly gain we have seen in this stretch, and annual NER growth for new leases improved to negative 1.0%, up from negative 1.9% the prior week. Rents are now nearly back to where they were a year ago. The range across the country remains wide, with several coastal markets posting solid positive annual growth while much of the Sun Belt is still working through negative territory.  RevPAU, which combines the change in rents and occupancy, was $1,670, up 0.8% on the week and down 1.3% from a year ago, a clear improvement from negative 2.2% the prior week. Revenue per available unit is accelerating right alongside rents, and the annual drag has now been cut nearly in half over the past two weeks. For operators, the read this week is genuinely encouraging: occupancy is steady, rents are firming, and the annual comparisons are closing fast as spring leasing winds down.  Explore our webpage for more insights and resources: https://bit.ly/Radix_Website

Annual Rent Declines Ease as Occupancy Holds Steady

Multifamily Operational Results  The national multifamily picture stayed stable in the week of June 14, with a small encouraging shift underneath the surface. As of June 14, the average U.S. occupancy rate was 94.26%, up 3 basis points from the prior week but still down 33 basis points from a year ago. The leased percentage was 96.31%, up 5 basis points on the week and down 101 basis points from last year. Occupancy continues to hold the line week to week, even if it is running modestly behind where we were a year ago.  Leasing velocity told a slightly better story this week. The average number of leases signed was 2.2 per property last week, flat from the prior week, and down 0.7 per week compared to a year ago. That annual gap narrowed from a full lease per week the prior week, which is a small but welcome sign that demand is inching closer to last year's pace as we move through June.  Net effective rent is where the trend is most visible. Annual NER growth for new leases improved to negative 1.9% nationally, up from negative 2.4% the prior week, and NER ticked up 0.1% on the week to $1,752. Rents are slowly closing the gap to last year. The range across the country remains wide, with several coastal markets posting positive annual growth while much of the Sun Belt is still in negative territory, some of it down in the high single digits.  RevPAU, which combines the change in rents and occupancy, was $1,652, up 0.1% on the week and down 2.2% from a year ago, an improvement from negative 2.6% the prior week. The annual drag on revenue per available unit is easing as rents firm, even with occupancy sitting slightly below last year. For operators, the read this week is constructive: occupancy is steady and the rent trend is finally moving in the right direction.  Explore our webpage for more insights and resources: https://bit.ly/Radix_Website