Make no mistake: The Fed is having its intended impact -- at least on rental demand and rents. Rental demand started hot in 1st quarter and has been waning since 2nd quarter after the Fed's first rate hike in the second half of March. Month-over-month rent increases have followed suit, coming in far below the record hikes seen in 2021. Anyone suggesting otherwise is looking at lagging data. New lease rents are no longer a major driver of inflation.
Worry has a freezing effect on big decisions -- like signing a new lease. Worry encourages us to stay in place and to wait it out. That impacts demand for all types of housing.
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