I can't recall a time when there was a such a large disconnect between macro economic data (i.e. jobs, sentiment, etc.) and apartment demand (i.e. strong absorption, improving affordability, etc.)
Every REIT spoke about strong renter financials, absorption and improving fundamentals on earnings calls last two weeks. Private sector data showing similar. While those sectors generally cater to mid/upper income renters, it's not nothing. Also: Earlier this year MAA (largest REIT by unit count) reported data showing they've seen no slowdown in young adult demand-- countering gov't data showing challenges for recent college grads finding jobs and more of them living with parents again.
I would assume that strong demand trends couldn't persist if the economic headwinds persist. But who knows. It's also possible that there are positive trends in the economy that uniquely favor the demographic served by institutional-grade apartments and single-family rentals. Certainly better wage growth in that demographic.