US Producer Prices rose 3.5% over the last year, the biggest increase since February 2023.
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After this month’s hot inflation data and strong jobs growth, the market is not pricing in any Fed rate cuts until 2025.
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The Average Number Of Days A Unit Is Vacant Has Climbed Above The Pre-Pandemic Level:
With the delivery of more than one million new market-rate multifamily units over the last two years, renters now have more options to choose from than ever before. That has softened occupancy rates and resulted in units sitting vacant for longer. The average number of days a stabilized unit sits vacant before a new tenant moves in is nearly five days longer than it was on average in the five years prior to 2020.
The variance to historic levels may seem miniscule, but extended vacancy works out to an additional $275 per unit in expenses and turnover costs (based on current average. U.S. effective rent of $1,818 as of January 2025). With more than half a million stabilized units unoccupied, the additional impact to property operations quickly adds up.
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U.S. rental vacancy rate from ApartmentList has surpassed the July 2020 peak, up to 6.85%:
Multifamily Market News 