Hornstein Fetter April 2018 Market Insight
Rent Growth with Scott Fetter
by Scott Fetter
I monitor rents and interest rates like I watch my kids for runny noses and a fever. Is there a snotty nose or a fever? No daycare that day! Just like my kids’ noses and foreheads, rent and interest rates give me a quick and honest assessment of the strength of our multifamily market.
Last month we wrote about interest rates. They’re up. Not good. But what we closely watched through the winter was the stagnant rent growth that property managers we work with reported to us. But then spring happened, and just like that, things started looking better. Rent has continued to climb and the market, which I was starting to question, showed a resiliency that surprised (and pleased) me.
So, with spring here and rents again showing gains over previous quarters, I have renewed optimism that this market has more room to run. I’m still concerned about the direction of interest rates, but with rents showing continued growth, I’m feeling good about the market overall. I’d love to see interest rates soften again, but at least rent growth remains. If I’m being honest, so long as my kid doesn’t have a fever AND a runny nose, he can still go to daycare.