U.S. Apartment Demand Surges

Unsubscribe below if you would like to stop receiving future emails

New here? Join the newsletter (it's free).

Soft Jobs Report Increases Chance of Lower Mortgage Rates link

• The June jobs report shows an increase in the unemployment rate from 4.0% to 4.1%, indicating a cooling labor market. This uptick is due to more people becoming unemployed rather than joining the labor force.

• The report noted 206,000 jobs were created in June, slightly above expectations, but revisions to previous months revealed 111,000 fewer jobs than initially reported. Wage growth remained steady at 0.3% month-over-month and 3.9% year-over-year.

• The Fed is now likely to cut rates in September if inflation data aligns with expectations. This potential rate cut could lead to lower mortgage rates by the end of the year, benefiting home buyers and sellers.

U.S. Apartment Demand Surges in 2nd Quarter link

• The U.S. saw a significant demand surge for apartments in Q2 2024, with 390,000 units absorbed over the past 12 months. This marks the eighth-largest annual absorption on record, close to pandemic-era highs.

• Despite strong demand, supply continues to outpace it, with over 500,000 new market-rate apartments delivered in the past year. This represents a 45% increase from the previous 12 months, the highest since 1986.

• The South region led the demand, absorbing 226,000 units, nearly 60% of the national total. The West region followed with 89,000 units, its strongest absorption in two years, showing signs of improvement after a challenging period.

Ranking Apartment Rent-to-Income Ratios Across California link

• San Francisco has the highest effective apartment rents among California's major markets at $3,268 as of May 2024, but high incomes result in a median rent-to-income ratio below the national norm. This highlights a balance between high costs and high earnings in the Bay Area.

• Riverside holds the highest rent-to-income ratio in the state at 29.9%, indicating a significant burden on renters relative to their income. Other cities like San Diego, Oakland, and Los Angeles also exceed the national rent-to-income ratio average.

• Stockton is the most affordable, with the lowest effective rents at $1,868 and the lowest rent-to-income ratio at 18.7%. This suggests that Stockton offers more manageable living costs compared to other Californian cities.

US Apartment Market Trends, June 2024

June Employment Report Keeps September Rate Cut on the Table 

Where Military Homeownership Is Booming 

An Interesting Insight: Number of Months from the Last Fed Hike to the Start of the Recession

These Kind of Companies Have Higher Turnover Rates 

Who is getting funded in Proptech?

Ranked: Countries With the Most Millionaires and Billionaires

I love everything about this house.

Link to the listing

That's all, folks.

Cheers,

Vidit

P.S - Read past newsletters here