I clicked through to the full article and while it's true that YOY absolute rates are negative, I think it's the wrong interpretation to say that they're predicted to go lower. The data shows...
I clicked through to the full article and while it's true that YOY absolute rates are negative, I think it's the wrong interpretation to say that they're predicted to go lower. The data shows absolutely that rates are continuing to rise in line with a modern historical 2% per year increase, the pressure being alluded to is pressure to keep rate rises low but rates will indeed continue to rise or at the very least stay flat. It would take a major recession to see sustained rental rate deflation.
The takeaway is in line with other analyses that I've seen, rental rates are largely baked in now. Increases will slow incredibly versus what's been going on in the past few years but expecting rates to actually go down is unlikely
I clicked through to the full article and while it's true that YOY absolute rates are negative, I think it's the wrong interpretation to say that they're predicted to go lower. The data shows absolutely that rates are continuing to rise in line with a modern historical 2% per year increase, the pressure being alluded to is pressure to keep rate rises low but rates will indeed continue to rise or at the very least stay flat. It would take a major recession to see sustained rental rate deflation.
The takeaway is in line with other analyses that I've seen, rental rates are largely baked in now. Increases will slow incredibly versus what's been going on in the past few years but expecting rates to actually go down is unlikely
Thanks. I either misread the blog post, or the blog summary is wrong then.
San Francisco is an example.