CRE | Weekly update (vol. 2)
Unemployment rate officially falls to 3.9%, lowest rate in decades.
The BLS reported that unemployment rate has fallen to 3.9% as 164,000 jobs were added in April. A rate this low has not been seen since the late 90's
The low unemployment rate accompanied by stronger wage growth, is absolutely confirming that the nation is at full employment. Further, the "slower" rate of net new hires is likely due to lack of labor, not lack of jobs.
REIS reports rising rents and rising vacancies in most multifamily markets.
According to REIS, national apartment vacancies rose 10 basis points to 4.7% in the first quarter as rents rose 0.8% at the same time. This reflects rising demand from job growth and competition from new supply.
While fears of isloated oversupply are still justified, the apartment market has remained steady into 2018. With rising wages and job growth it is poised for more growth this year.