The Radix Review: Multifamily Trends Explained

This is a narration of our weekly Rent and Operating Trends Report. The U.S. economy continues its steady march forward, as most key indicators have maintained their recent trends. August job growth was strong once again, as the labor force added 187,000 new jobs. The unemployment rate increased to 3.8%, but some of the increase in unemployment can be attributed to the continuous growth in labor f...

San Antonio’s apartment fundamentals have been trending downward for the past year, and it’s occupancy rate is the lowest of any major market in the nation. However, strong infrastructure development, a diversifying economy, and continued strong in migration gives San Antonio apartments a bright long term future according to local expert Rich Lowe, Principal at Pilot Legacy Private Equity. Tune in...

This is a narration of our weekly Multifamily Market Report. The San Antonio market has been among the weakest performing MSAs in the nation over the past year, as a once hot apartment market has turned negative quickly. All key indicators lag the national average and are also negative on both short and long-term bases. Traditionally a stable market with a heavy military influence, the San Antonio...

This is a narration of our weekly Rent and Operating Trends Report. The U.S. economy continues its steady growth as the calendar turns to September. While monetary policy is still up in the air, and as a result investment markets remain turbulent, major economic fundamentals have stabilized. The Personal Consumption Expenditures Index increased by 3.3% on an annualized basis, but the 0.2% monthly...

This is a narration of our weekly Multifamily Market Report. Over the past three years, one of the steadiest and best performing markets nationwide has been San Diego. The Southern California metro did not experience as significant of a decline in housing demand and rents seen in Los Angeles and San Francisco in the early days of COVID-19, but the metro had a very strong recovery in 2021 and 2022....

This weeks Radix Metro Podcast focuses on San Diego. The Southern California metro is leading its peer markets in rent and occupancy performance, maintaining strong fundamental growth as the national multifamily market cools. Sarah Dumas, Vice President of Operations at RPM joins us to talk about the unique aspects of San Diego that are contributing to its outperformance, and where this metro is h...

This is a narration of our weekly Rent and Operating Trends Report. Fed Chair Jerome Powell gave a very middle of the road speech last week at the Kansas City Fed’s Jackson Hole symposium. The leader of the central bank acknowledged that tightening monetary policy has had its desired impact on inflation, but also warned that inflation may come back, thus warranting further interest rate increases....

This is a narration of our weekly Multifamily Market Report. Boston, like many of its northeastern peer markets, is known for its older apartment stock and higher percentage of single-family homes compared to secondary markets in the south and west. However, as the market is known for innovation, it’s apartment market has grown and evolved quickly over the past few real estate cycles. Rent and ope...

We recently sat down with Gleb Nechayev, Head of Research and Chief Economist at Berkshire Residential Investments to talk about the multifamily industry in Boston. Gleb shares key insights into what makes Boston one of the strongest performing markets in 2023 and what might be in store for the apartment industry in the coming months. Tune in for our first podcast in the new Radix Metro Report ser...

This is a narration of our weekly Rent and Operating Trends Report. Economists will be focused more on the qualitative information coming out this week than the quantitative data being released. The Kansas City Fed hosts its annual symposium in Jackson Hole, and Chair Jerome Powell will be delivering the keynote address on Friday. Ahead of the meeting, three other Fed governors are expected to giv...

This is a narration of our weekly Rent and Operating Trends Report. Inflation rose modestly last week, as the July CPI checked in at a 3.2% annualized rate, slightly above the June read, but below analysts’ expectations. While I don’t think this will be enough of a move to force the Fed to raise rates again, the rest of the yield curve continues to increase. The 10-year treasury yield is 4.19% as...

This is a narration of our weekly Rent and Operating Trends Report. A wave of multifamily maturities has been building for the better part of three years. Loans originated in late 2020 and 2021, held historically low initial interest rates, and experienced some of the fastest rent growth in history during their first year. While economic and multifamily fundamentals have changed, beginning in late...

This is a narration of our weekly Rent and Operating Trends Report. The Fed raised interest rates once again last week, bringing the benchmark short-term rate to a range of 5.25-5.50%. The change has had a very mild impact on capital markets, as major equity indices, commodity markets and long-term interest rates increased modestly. Yet each incremental increase will have a significant impact on m...

This is a narration of our weekly Rent and Operating Trends Report. Economists will be focused this week on monetary policy as well as the first release of Q2 GDP. The Fed will meet on Tuesday and Wednesday, and while most forecasters anticipate another 25-basis point increase in interest rates, expectations are mixed on whether or not the Federal Open Markets Committee will raise interest rates a...

This is a narration of our weekly Rent and Operating Trends Report. The June consumer price index showed weaker inflation than economists estimated, with prices rising 20 basis points month-over-month. On an annual basis the CPI increased 3.0%. While the Fed prefers to monitor the personal consumption expenditures index for inflation, last week’s CPI release will be the final data point on inflati...

This is a narration of our weekly Rent and Operating Trends Report. The June jobs report showed continued steady growth, as 209,000 new jobs were created, and the unemployment rate fell 10 basis points to 3.6%. Economists had estimated 240,000 new jobs to be created and despite the slightly weaker than expected report, interest rates across the treasury yield curve increased with the 10-year treas...

This is a narration of our weekly Rent and Operating Trends Report. The first half of 2023 has been marked by economic volatility, major regional bank failures, continued monetary tightening and ample talk of an upcoming recession. However, the overall economy remains on steady footing. GDP increased at a 2% annualized rate in Q1 according to the final estimate released last week. Employment remai...

This is a narration of our weekly Rent and Operating Trends Report. As we approach the end of the second quarter there will be two key economic indicators released this week. The final estimate of Q1 GDP will be released on Thursday. First quarter GDP had initially been reported at a 1.1% growth rate but was revised upward to 1.3%. Many economists have been predicting a recession but have not give...

This is a narration of our weekly Rent and Operating Trends Report. The U.S. economy rests on solid footing following last week’s Fed meeting. Interest rates remained flat last week, and while the Fed may yet raise rates once or twice more this year, the end of the tightening cycle is clearly in view. Inflation continues to slow down, yet the consumer remains strong. Both retail sales and consumer...

This is a narration of our weekly Rent and Operating Trends Report. The Federal Reserve left interest rates unchanged at its June meeting, which concluded on Wednesday. While this is the first meeting without an interest rate increase since last March, the Fed indicated there may be additional rate hikes coming this year. The median “dot plot”, which measures the interest rate expectations of Fed...

This is a narration of our weekly Rent and Operating Trends Report. The U.S. economy, specifically the employment market, remains stalwart as growth continued in May. Roughly 340,000 new jobs were added last month, giving many economists hope that we may avoid a recession this year. Despite continuously rising interest rates and persistent inflation, the employment market has added jobs in each of...

This is a narration of our weekly Rent and Operating Trends Report. The Personal Consumption Expenditures Index (PCE) increased unexpectedly last month, which has given economists doubt that the Fed is finished with their current monetary tightening campaign. James Bullard, President of the St. Louis Fed, mentioned last week that he sees the need for two additional interest rate hikes to slow down...

This is a narration of our weekly Rent and Operating Trends Report.  This will be an important week both from a data and commentary perspective as it relates to the Fed’s future decisions on monetary policy. The Personal Consumption Expenditures index, the Fed’s preferred measure of inflation, will be released Friday. Six different Fed Governors or Regional Fed Presidents are also scheduled to giv...

This is a narration of our weekly Rent and Operating Trends Report. I anticipate a quiet week on the economic front, as none of the major indicators will be released this week. As we’ve mentioned in recent reports, the macro-economy has entered a period of relative stability as interest rates appear to be stationary and long-term fundamentals are returning to normal. A significantly negative yield...

This is a narration of our weekly Rent and Operating Trends Report. The U.S. economy continues its trend of stabilization as we move into May, with job growth remaining the strongest aspect of our nation’s economy. 253,000 new jobs were added across the country last month, and the unemployment rate dropped to a 6 decade low of 3.4%. Wage inflation has endured, but annual wage gains are now averagi...