Contradictions in Rent Growth and Market Dynamics: Insights from the Latest Earnings Call

Apartment Demand and Affordability:
- Camden Property Trust reported second quarter apartment demand as one of the best in 25 years, with 31 months of wage growth exceeding rent growth.
- This trend was driven by improving apartment affordability, strong outsized population and job growth, and low move-outs to purchase homes due to high homeownership costs.

Financial Performance and Asset Recycling:
- Camden's core funds from operations for the second quarter were $187.6 million, or $1.70 per share, $0.01 ahead of the midpoint of prior quarterly guidance.
- The financial performance was driven by higher property tax refunds, lower interest expenses, and successful asset recycling activities like purchasing Camden Clearwater and disposing of older communities.

Supply and Demand Dynamics:
- New additions to supply peaked in markets, with new developments leasing at a decent pace given record demand.
- Rental rates are expected to firm by the beginning of 2026, leading to better-than-average rent growth, with Advisors forecasting 4% rent growth in Camden's markets in 2026.

Operational and Customer Satisfaction:
- Occupancy for the second quarter averaged 95.6%, with annualized net turnover of only 39%, reflecting strong resident retention and satisfaction.
- This was attributed to excellent customer experience, high customer sentiment scores, and low levels of move-outs for home purchases.