The Radix Review: Multifamily Trends Explained

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

Occupancy Holds Steady While Rents Stay Under Pressure

Multifamily Operational Results  The national multifamily picture held steady to open June, with occupancy ticking up slightly on the week even as the annual comparison stayed soft. As of June 7, the average U.S. occupancy rate was 94.24%, up 2 basis points from the prior week but down 23 basis points from a year ago. The leased percentage was 96.27%, essentially flat week over week and down 104 basis points from last year. Holding the line this deep into leasing season is encouraging, but we are still running behind where we were at this point last year.  Leasing velocity remains the metric to watch. The average number of leases signed was 2.2 per property last week, down 0.1 from the prior week and down a full lease per week compared to a year ago. That year over year gap is the clearest signal that demand has not fully caught up with the supply working through the system, and it is the main reason occupancy is holding rather than climbing the way we would normally expect in early June.  Annual net effective rent growth for new leases was negative 2.4% nationally, and NER was flat week over week at $1,751. Rents have struggled to find momentum this spring, and the annual figure reflects the softer pricing environment operators have been navigating across much of the country. The range remains wide, with a handful of coastal markets still posting positive annual growth while several Sun Belt markets sit in negative territory, some of them down in the high single digits.  RevPAU, which combines the change in rents and occupancy, was $1,650, up 0.1% on the week but down 2.6% from a year ago. With both rents and occupancy running below last year's levels, revenue per available unit continues to feel pressure from both sides. For operators, the takeaway is consistent with recent weeks: protect occupancy where you can, because pricing power will stay limited until leasing velocity picks back up.  Explore our webpage for more insights and resources: https://bit.ly/Radix_Website

Occupancy Inches Up, But Rent Growth Stays Under Pressure

The multifamily market closed out May on a note of quiet resilience. Occupancy nudged higher for the week, the year-over-year gap continued to narrow, and leasing activity held steady. The rent side remains the story that operators are watching most closely. As of May 31, the average U.S. occupancy rate was 94.22%, up 4 basis points from the prior week and down 22 basis points from a year ago. The leased percentage was 96.26%, up 5 basis points week over week and down 1.00% from last year. Both metrics have been moving in the right direction on a weekly basis throughout May, and the annual gap, while still present, is smaller than it was at the start of the month. The average number of leases signed was 2.3 per property last week, down 0.1 from the prior week and down 1.0 compared to this time last year. Leasing velocity has held in a narrow band all month. Markets on the higher end of the range are demonstrating that demand is there when supply and pricing are aligned. Net effective rent for new leases was $1,751, up 0.1% from the prior week but down 2.4% from a year ago. RevPAU was $1,650, also up 0.1% week over week and down 2.6% annually. The weekly direction is encouraging, but the annual comparisons reflect the concession activity that pulled rents lower in the second half of May. Closing out the month with two consecutive weeks of flat to positive weekly NER movement is a modest stabilizing signal heading into June. Explore our webpage for more insights and resources: https://bit.ly/Radix_Website

Rent Softens as Leasing Season Holds Steady

The national occupancy rate held at 94.20% for the week of May 24, up one basis point from the prior week. The leased percentage came in at 96.22%, also edging up five basis points week over week. Both metrics remain below last year's pace, down 22 and 137 basis points respectively, but the week-over-week stability suggests seasonal demand is absorbing new availability without further deterioration.  Leasing velocity was flat at 2.4 leases per property for the week, unchanged from the prior period. The year-over-year gap remains meaningful at a full lease per week below last year's rate, a signal that the demand recovery operators were hoping for this spring has not yet materialized at the pace needed to close the YoY shortfall.  Net effective rent came in at $1,750 for the week, down 3.0% from the prior week and down 2.5% from a year ago. The week-over-week move reflects seasonal concession activity as operators compete for leases during a period of moderate demand. Markets vary considerably, with a handful of coastal and Midwest metros holding flat to slightly positive on an annual basis while Sun Belt markets face the steepest YoY pressure.  RevPAU, which captures the combined effect of rent and occupancy, came in at $1,648, down 3.0% week over week and 2.7% below last year. The revenue picture continues to reflect the same pattern visible across the spring: occupancy is largely stable, but concessions and softening effective rents are compressing the top line. For operators holding occupancy through pricing flexibility, the tradeoff is now showing up clearly in RevPAU. Explore our webpage for more insights and resources: https://bit.ly/Radix_Website

Gas Prices Bite as Rent Growth Hits Its Best Level of the Year

Markets strengthened this week following the U.S.-China trade truce, but rising fuel costs continue to pressure renter affordability, an important dynamic heading into the peak of leasing season. * Energy and Inflation: AAA reports the national gas average at $4.56/gal as of May 21, up roughly 44% from a year ago. At those levels, fuel costs are becoming a meaningful pressure point for renter budgets during peak leasing season. The Fed has also signaled little urgency to cut rates given persistent inflation, keeping pressure on both consumers and operators with floating rate debt. * Capital Markets: The S&P 500 closed at 7,433 on May 20, up sharply from the 6,944 level recorded in mid January. Investor sentiment has improved meaningfully since April as markets continue responding positively to easing trade tensions and broader economic stabilization. * Mortgage Rates: The 30 year fixed mortgage rate sits near 6.58% according to Bankrate and the WSJ as of May 20. While below earlier 2026 highs, rates remain elevated relative to levels needed to meaningfully reopen the for sale housing market. Transaction activity remains subdued, continuing to support renter demand across many multifamily markets. The broader macro environment remains mixed for multifamily operators. Improving market sentiment and stable renter demand are supportive, but elevated consumer costs continue limiting affordability flexibility in more price sensitive segments of the market. Explore our webpage for more insights and resources: https://bit.ly/Radix_Website