Inflation descending at a more subdued pace. Annual growth in the headline consumer price index (CPI) slowed to 4.9 percent in April, marking the 10th month in a row that this metric has decelerated since the Federal Reserve began tightening policy in the current cycle. Increases in the cost of borrowing have chipped away at household ...
Read MoreFederal Reserve pauses in June to assess data. The Federal Open Market Committee held their policy rate flat at a lower bound of 5 percent at the June meeting. This is the first time the FOMC has not raised the federal funds rate at a meeting since before March 2022. The pause does not, however, imply an end to the current tightening cycle. The Federal ...
Read MoreHiring reaches four-month high. Employers across the country created 339,000 new jobs last month, the most since January. Hiring occurred across industries, as only the manufacturing and information sectors reported net staff contractions. The number of self-employed individuals also declined notably in ...
Read MoreInflation descending at a more subdued pace. Annual growth in the headline consumer price index (CPI) slowed to 4.9 percent in April, marking the 10th month in a row that this metric has decelerated since the Federal Reserve began tightening policy in the current cycle....
Read MoreInflation descending at a more subdued pace. Annual growth in the headline consumer price index (CPI) slowed to 4.9 percent in April, marking the 10th month in a row that this metric has decelerated since the Federal Reserve began tightening policy in the current cycle....
Read MoreValuations are below 2022 highs, but creeping back up. The median sale price of an existing single-family house was down 2.1 percent year-over-year in April 2023, the largest decrease on an annual basis going back to 2012. At the same time, the starting point of that reference period was historically elevated, making the decline over the past year more of a ...
Read MoreInflation descending at a more subdued pace. Annual growth in the headline consumer price index (CPI) slowed to 4.9 percent in April, marking the 10th month in a row that this metric has decelerated since the Federal Reserve began tightening policy in the current cycle....
Read MoreMULTIFAMILY 2023 OUTLOOK
Read MoreFederal funds rate pushed to 16-year high. On May 3, the Federal Open Market Committee lifted the overnight lending rate to a lower bound of 5.0 percent, a 25-basis-point shift. The FOMC has raised the federal funds rate a combined 75 basis points so far in 2023, just onesixth of last year’s total shift. Going forward, the path is more open. Chairman Powell stated that the FOMC will take a meeting-by-meeting approach to any further ...
Read MoreLabor market continued to grow in April. Employers created 253,000 positions in April, up from the 165,000 jobs added in March but below the year-to-date monthly average of 285,000. Hiring last month spanned most sectors, ranging from technical health care and professional services roles to hourly restaurant positions. April’s employment growth, paired with a reduction in...
Read MoreEmployers continuing to hire, but at tapering pace. The economy welcomed 236,000 new positions in March, the slowest month for job creation since a net loss in December 2020. Hiring was led by the leisure and hospitality sector, along with additions in health care, the public sector, and professional and business services. These gains offset job losses ...
Read MoreConstruction starts hindered. A tight labor market, strong wage growth, and elevated costs for food, services and housing have all contributed to keeping overall inflation elevated. The Fed has responded to this by hiking interest rates. As of late March, the overnight lending rate was at 4.75 percent, the highest level since December 2007. Also, despite ...
Read MoreIn February, the Supreme Court heard arguments on the legality of federal student loan forgiveness, and repayment will begin 60 days after a decision is announced. The return of this fixed expense that many households have not contended with in three years will likely weigh on consumer spending, stacking on top of existing inflation pressure and recessionary fears…
Read MoreMillennial flow to homeownership postponed. The age 28- to 34-year-old subset is among the largest population groups by size, and will play an important role for the multifamily sector going forward. This bulky cohort was responsible for strong apartment demand over the past decade, as they started their careers and formed households. Now, many are reaching a life period that historically correlates with growing their households and transitioning...
Read MoreBanking shock prompts Fed to take a more measured approach. At its March 22 meeting, the Federal Open Market Committee raised the federal funds rate for the ninth time in 12 months. The 25-basis-point hike matches the margin from February and lifts the lending rate’s lower bound to 4.75 percent. The FOMC cited still-too-high inflation and ...
Read MoreMillennial flow to homeownership postponed. The age 28- to 34-year-old subset is among the largest population groups by size, and will play an important role for the multifamily sector going forward. This bulky cohort was responsible for strong apartment demand over the past decade, as they started their careers and formed households. Now, many are reaching a life period that historically correlates with growing their households and transitioning...
Read MoreBanking turmoil may encourage the Fed to tread carefully. Over the past year the Federal Reserve has aggressively increased interest rates in a bid to cool infl ation, creating challenges for commercial real estate investors and lenders. Messaging from the Fed prior to the recent bank failures implied ...
Read MoreProminent tech and venture capital bank closes. Silicon Valley Bank (SVB), the country’s 16th-largest bank, was seized by California state regulators on Friday, March 10 and placed into FDIC receivership in the largest banking collapse since 2008. Recent troubles in the ...
Read MoreEmployment gain hits highest point in nearly a year. Job growth surged in January, as a net 517,000 positions were created on a seasonally-adjusted basis. January’s employment gain not only surpasses last year’s monthly average of 401,000 jobs, but it was also the most active period for hiring since February ...
Read More2023 Multifamily U.S. Investment Forecast
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