Employment Growth Decelerating; Implications for Commercial Real Estate
Read More
Higher Service Costs Shift Tenant Leasing Demand; Tariff Impact Still Forming
Read More
Recent GDP Estimates Provide Key Insights for Industrial, Multifamily Sectors
Read More
Employment Growth Decelerating: Implications for Commercial Real Estate
Read More
The Forces Driving Interest Rates Lower - Will They Last?
Read More
CRE Space Demand Trends for 2Q
Read More
Why CRE Fundamentals Are Poised To Improve
Read More
Tariff Effects Begin to Emerge, Delaying Fed Action Until Broader Impacts Unfold
Read More
New Tax Laws Ease Uncertainty: Implications For CRE Investors
Read More
Passage of Tax Bill Reduces Uncertainty, Amplifies Benefits of Commercial Real Estate Investment
Read More
Why 2025 Will Be A Turning Point For Commercial Real Estate
Read More
This November, California voters will decide if cities and counties can impose rent control on all apartments and single-family homes. If approved, the measure – Proposition 33 – could create unintended consequences for renters while also broadly impacting apartment owners and builders. Foremost among these could be the impact to development. Rent control could alter developers’ projected returns and suppress the long-term supply of apartments, prolonging the state’s housing shortage....
Read More
Unemployment rate hits a near three-year high. Total employment increased by 114,000 jobs in July, the second-lowest monthly gain in 2024 and falling well under the trailing-year average of 215,000 roles added. That hiring slowdown contributed to unemployment rising by 20 basis points month-over-month to 4.3 percent, the highest measure since October 2021 ...
Read More
Consumers propel GDP to larger increase. The annualized pace of GDP growth accelerated to 2.8 percent in the second quarter, up from 1.4 percent in the opening period of 2024. Momentum came predominantly from gains in consumer spending and private nonresidential investment, particularly for transportation equipment. These drivers are likely to ease moving ...
Read More
Housing market remains in a state of disruption. Existing home sales slid to a six-month low in June 2024 as the median price eased by just 0.2 percent from May's all-time high and the average 30-year fixed-rate mortgage held near 7 percent. Softer purchase activity signals that buyers should gain leverage in the current climate, although a lack of entry-level home ...
Read More
Job creation supported by business-cycle-agnostic sectors. The creation of 206,000 jobs in June brings total net hiring for the second quarter to 532,000, the lowest three-month total for employment growth since January of 2021. Much of the recent hiring slowdown has come from industries tied to the business cycle, including ...
Read More
Falling commodity prices reflect cooling economy. While pricing pressures remain above target 27 months into the Federal Reserve's current monetary tightening cycle, meaningful relief is beginning to show. Annual growth in the commodities less food and energy index — which captures pricing changes for non-necessity items such as recreation, vehicles and apparel — has been in negative territory ...
Read More
Labor market moving closer to equilibrium even amid strong hiring. Total employment increased by 272,000 in May, coming in above the average monthly gain year-to-date. Despite this uptick in job creation, there are several signs that overall labor demand is cooling and moving closer in line with labor supply. Nearly half of last month’s hiring was concentrated in just two main employment sectors, which includes roles in government. It is likely that public sector staffing needs will ebb in the months ahead as budget shortfalls are addressed. The unemployment rate also inched up 10 basis points from April to 4.0 percent in May, its highest mark since January 2022. This shift followed an April decline in the number of available positions to 8.06 million open jobs, the lowest level since February 2021. Equating to 1.2 available roles for every job seeker, this is the closest the margin has been since June 2021....
Read More
National apartment absorption surged from January through March 2024, reaching the strongest first quarter tally on record. Vacancy continued to rise amid aggressive construction, however, dictating greater concession use in development-heavy markets. All-time high home prices in early 2024 and persistently elevated interest rates nevertheless spotlight the cost-saving benefits of renting…
Read More
Higher mortgage rates influence buyer and seller motivation. The average 30-year fixed-rate mortgage climbed to a five-month high of 7.0 percent in April 2024, as the market responded to persistent inflationary pressures and Federal Reserve policy. Increasing borrowing costs, meanwhile, encouraged more prospective buyers to sit tight ...
Read More