With apartment demand slowing from all-time peaks, it’s natural to expect underlying tenant weakness. That may be true – after all, it’s hard to argue that demand has been especially strong as households instead opt to remain in place given the economic uncertainty.
We looked at lease application data over the summer, but I thought it was worth revisiting this data as we see the market shift to see if there are any early indications of weakness. Much like the delinquency analysis we shared last week, there hasn’t been a significant falloff yet. Earlier in the summer, applications were down about 25% over a year ago, but in September, were only down 15%, indicating the market has held up better recently than it had earlier in the year.
Read more multifamily analysis from Sam Tenenbaum, Head of Multifamily Insights at Cushman & Wakefield HERE.