by Danger calculated on 05/10/2022 11:54:00

At this time, within the Calculated Danger Actual Property E-newsletter: Residences: very low internet absorption in Q3, new building deliveries even weaker

A short excerpt:

Moody’s Analytics additionally reported that efficient rents have been up 1.7% in Q3 in comparison with Q2, and 10.2% year-over-year (YoY). This can be a sharp slowdown from Q2, when rents rose 16.9% year-over-year.

Click on on the graphic to enlarge the picture.

Final week, I posted a chart of the year-over-year change for varied lease metrics. The Zillow metric is up 12.3% year-on-year in August, up from 13.8% year-on-year in July. That is down from a peak of 17.2% year-on-year in February. The ApartmentList metric rose 7.5% year-over-year in September, in comparison with 9.8% in August. That is down from final November’s peak of 18.0% year-on-year.

The Reis survey (pink dots) is quarterly and exhibits the same slowdown in precise rents.
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In the end, demand for residences was weak within the third quarter, family formation slowed sharply and a lot of residences are within the pipeline. We should always quickly see completions above internet absorption, and the completion of all these items underneath building ought to contribute to rental stress.

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