Couple of post script items I neglected to add in my original post.
First - I should also note the inflation data for June came in really favorable as well (this data was released after my original letter). This is CPI, which is slightly different from the PCE data I shared. When looking at it with private rents this measure actually went negative ! 2 months still doesn't make a trend but looking promising, & given what I'm seeing with sunbelt multi rents the shelter element should continue to provide tailwinds (not that it helps us New Yorkers right now...)
Second - Somewhat related to the above, I probably ought to have mentioned the significant outperformance of coastal multi REITs vs sunbelt. This is something I predicted back in 2022 given relative pricing and relative supply pipelines, and we benefited from this trend. NYC in particular being a really strong market, although SF remains soft. Some sunbelt markets are YoY asking rent negative
Couple of post script items I neglected to add in my original post.
First - I should also note the inflation data for June came in really favorable as well (this data was released after my original letter). This is CPI, which is slightly different from the PCE data I shared. When looking at it with private rents this measure actually went negative ! 2 months still doesn't make a trend but looking promising, & given what I'm seeing with sunbelt multi rents the shelter element should continue to provide tailwinds (not that it helps us New Yorkers right now...)
Second - Somewhat related to the above, I probably ought to have mentioned the significant outperformance of coastal multi REITs vs sunbelt. This is something I predicted back in 2022 given relative pricing and relative supply pipelines, and we benefited from this trend. NYC in particular being a really strong market, although SF remains soft. Some sunbelt markets are YoY asking rent negative