DAYTON OVERVIEW

1| Prior to the pandemic, Dayton’s real gross metropolitan product grew at an average annual rate of 1.6% from 2015 to 2019. During that same five-year period, job growth averaged 1.0% annually, with roughly 3,900 jobs added on average each year. In 2020, COVID-19 mitigation measures and limited business activity caused the local economy to contract as much as 9.6% year-over-year in 2nd quarter. In 2022, the metros inflation-adjusted economic output contracted 0.8%. 2| At the same time, the metro recorded a net gain of 2,900 jobs, expanding the employment base 0.8%. 3| Dayton’s unemployment rate in November 2022 declined 0.4 points year-over-year to 3.2%, below the national average of 3.4%. 4| Job gains in Dayton were most pronounced in the Leisure/Hospitality Services sector followed by Government and Professional/Business Services. 5| Due to job losses stemming from the pandemic, Dayton’s current employment base now sits roughly 5,100 jobs or about 1% below the pre-pandemic level in February 2020.

1| Over the past five years, annual change in effective asking rents in Dayton ranged from 1.9% to 10.3%. In 4th quarter 2022, effective asking rents for new leases were up 8.4% year-over-year. That annual rent performance was well above the market’s five-year average of 4.8%. 2| Product classes in Dayton, Class A led for rent performance over the past five years. In 4th quarter 2022, annual effective rent change was fairly even across the board, registering at 8.3% in Class A units, 8.2% in Class B units and 8.7% in Class C units. 3| Among submarkets, the strongest annual rent change performances over the past year were in Northwest Dayton, North Dayton/Miami County and Greene County, all at 10% or greater. 4| The weakest performances were in Central Dayton/Kettering and South Montgomery County, but both were around 6.5%.

Rent Growth

Q1 2022 Market Snapshot

DAYTON VS NATIONAL RENT GROWTH Year-over-Year

Occupancy

BY ASSET CLASS Year-over-Year

1|

Occupancy in the Dayton apartment market has ranged from 93.9% to 98.0% over the past five years, averaging 96.5% during that period. Over the past year, occupancy lost 1.8 points, with the 4th quarter 2022 rate landing at 96.2%. 2| Product classes in Dayton, 4th quarter 2022 occupancy registered at 95.3% in Class A units, 96.5% in Class B units and 96.7% in Class C units. 3| In 4th quarter 2022 occupancy was strongest in Greene County and Central Dayton/Kettering. 4| The weakest reading was in Northwest Dayton at just less than 94%.