Mixed Signals in the Economy: What it Means for Real Estate Investors
We continue to get mixed messages about the state of the U.S. economy. On one hand, the Federal Reserve lowered the Fed funds rate by 25 basis points this month and signaled the potential for further cuts. Current expectations are for as many as three more 25-basis-point reductions before year-end. Unsurprisingly, many real estate investors […]
Is Oil Telling Us a Recession is Coming?
One of the most reliable early-warning indicators of economic trouble is falling oil demand—and right now, that signal is flashing yellow. As passive real estate investors, we may not trade commodities or watch energy markets closely. But oil is a core input to nearly every economic activity—from shipping and trucking to manufacturing and travel. When […]
Our 2025 Multifamily Outlook
It has been a rough couple years for multifamily investors in the wake to the Covid black swan, but 2025 is shaping up for the battered asset class to take revenge, and showcase its innate recession resistance, and once again provide investors with stable yield and long term growth.
Buy every deal that cashflows. Buy quality, late-model product, in good markets. Don’t over leverage and be aware of your prepayment penalties. Rates will come down; the new supply will get absorbed. Demand for rental housing will increase, driving rent growth. And demand for multifamily investments will increase, driving investment returns.
What Comes Next?
More rate cuts, Quantitative easing, and maybe even stimulus checks After the fastest pace of interest rate hikes in U.S. history, we finally got our first rate cut in September. The 50bps point cut represented a distinct pivot from the Fed’s previously hawkish and resilient position. Many critics of the move pointed out that Inflation […]
Unemployment, Layoffs and the Impact on Multifamily
Last week the Bureau of Labor Statistics (BLS) updated their estimate of how many jobs were created in the country this year, and they revealed that the figure was 818,000 jobs lower than initially indicated. The report marks the largest downward revision since 2009 and suggests that the labor market began losing steam earlier than […]
Opportunity Knocks
Are we reaching the bottom of the market cycle? Trends seem to point towards some great opportunities in the short term for those that can spot the trends.
What happened to all the jobs?
Recent data from Indeed shows that number of job postings are declining across almost all States and almost all Sectors of the economy.