10 Worst Apartment Occupancy Performers

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Fed holds rates steady amid mixed economic signals link

• The Fed's decision marks the seventh consecutive time rates have remained unchanged, indicating mixed economic signals. Strong job creation in May contrasts with a slight slowdown in inflation.

• The FOMC acknowledges progress towards the 2% inflation target but remains cautious. They do not anticipate rate cuts until they see sustained evidence of inflation trending towards this goal.

• Current projections suggest minimal rate cuts in 2024, with a median federal funds rate of 5.1%. The labor market added 272,000 jobs in May, while the Consumer Price Index showed a slight cooling in inflation.

Higher Risk of Housing Market Slowdown Continues in California, New Jersey, and Illinois link

• California, New Jersey, and Illinois have 34 of the 50 U.S. counties most at risk of housing market declines. New York City and Chicago metro areas are particularly vulnerable.

• Counties at greater risk face issues like high percentages of underwater mortgages and higher foreclosure rates. For instance, Kings County, NY, needs 109.5% of local wages for home ownership costs.

• Conversely, Virginia, Wisconsin, and Tennessee have many counties least vulnerable to market declines. They enjoy better affordability and lower unemployment rates.

Inner Ring Submarkets Lead Multifamily Rent Growth link

• Inner Ring submarkets near Downtown have seen a 3% annual rent growth since Q1 2022. These areas offer walkability and proximity to entertainment, attracting renters despite fewer people working full-time in Downtown offices.

• Traditional suburbs are also experiencing demand as millennials start families and seek more space. This urban-inclined generation values both suburban space and urban amenities.

• With companies pushing for a return to office work, Inner Ring areas are likely to remain popular. These neighborhoods offer shorter commutes and lifestyle benefits like walkability and larger living spaces.

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10 Worst Apartment Occupancy Performers See Vacancies Climb link

• Myrtle Beach has the highest vacancy rate in May, with 45,500 empty units and an occupancy rate of 90.3%. This is significantly below the South region's average occupancy rate of 93.2%.

• San Antonio, a major market, recorded 210,300 vacant units, resulting in an occupancy rate of 91.2%. This indicates a substantial backtrack in occupancy levels.

• Other notable cities with high vacancies include Memphis (101,400 units at 91.8% occupancy) and Jacksonville (131,400 units at 92% occupancy). Over-supply has been a persistent issue since Q3 2022 in these areas.

Retail Asking Rents Trending Up in South Florida link

• Retail rental asking rates in South Florida have increased by nearly 5% this year. The vacancy rate is now at 2.8%, indicating strong demand and limited supply.

• Robust consumer spending and a surge in tourism, including international visitors, are driving this trend. The demand for retail space is outpacing the available supply.

• Almost 95% of new retail construction in South Florida is pre-leased before completion. This pre-leasing trend underscores the high demand and scarcity of retail space in the region.

Ranked: U.S. Cities with the Highest Rent in 2024

These Industrial Markets Could See Turbulence 

Emerging Markets for Self Storage

64 NYC Office Buildings Eyed for Residential Conversions 

Pop-Up Stores Putting Down Roots in San Francisco 

Charted: Median Pay of Magnificent Seven Companies

That's all, folks.

Cheers,

Vidit

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