Demand Impacted by Jobs and Energy
Labor Market Loses Momentum
The February jobs report was weaker than expected, with the U.S. losing 92,000 jobs and falling well short of the growth economists projected. While the unemployment rate remains relatively low at 4.4%, the widespread nature of the decline—hitting everything from healthcare to construction—suggests a softening that could eventually impact renter household income and overall consumer confidence.
For multifamily operators, this is a troubling signal heading into leasing season. Job growth is key to absorbing new supply and increasing occupancy rates, but employment has declined in three of the past five months.
If this trend continues, it may push the Federal Reserve to reconsider rate reductions sooner than planned to help stabilize the broader economy, but inflation is facing a new challenge that is part of that decision.
Consumers’ Pain at the Pump
On top of the labor news, the military campaign in Iran has led to the closure of key global shipping lanes, creating immediate ripples in the energy market. We’re already seeing these disruptions translate to higher prices at the pump, which effectively acts as a “stealth tax” on consumers and can tighten the discretionary budgets of renters.
At the time of this publication, AAA reported that the national average price for a gallon of regular gas was $3.58, up from $2.94 a month ago.
As gas prices climb, the Fed finds itself in a difficult spot—trying to manage a cooling job market while simultaneously watching for inflation risks driven by energy costs. For asset managers, this means the “higher-for-longer” interest rate environment might have a more complicated exit strategy than we hoped for at the start of the year.
Multifamily Operational Results
The average U.S. occupancy rate of 94.07% was up slightly from the prior week, but it was down 42 basis points from a year ago. Even though supply has moderated, many MSAs are still working through excess inventory from last year due to the soft labor market.
The leased percentage was 95.92%, down 87 basis points from the prior year. The average number of leases signed was 2.1 per property last week. It was down half a lease per week compared to a year ago, and all major metros were below the prior year’s level. Fewer leases per week seem to be leading to more availability and a slightly lower occupancy rate relative to this time last March.
Annual net effective rent growth was slightly positive at 0.2% for the U.S. average. RevPAU, which combines the change in rents and occupancy, was -0.2% compared to a year ago.
| MSA | Annual Effective Rent Growth | Occupancy Rate |
| Atlanta, GA | -2.3% | 93.6% |
| Austin, TX | -5.9% | 92.1% |
| Dallas, TX | -0.8% | 92.9% |
| Denver, CO | -6.1% | 92.9% |
| Houston, TX | -4.0% | 92.9% |
| Las Vegas, NV | -4.8% | 94.5% |
| Miami, FL | -2.3% | 94.8% |
| Phoenix, AZ | -3.9% | 93.6% |
| San Francisco, CA | 5.4% | 96.4% |
| Seattle, WA | -2.0% | 94.8% |
| Washington, DC | -3.4% | 94.6% |
| U.S. | 0.2% | 94.1% |
Source: Radix Data as of 3/8/2026
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