Consumer sentiment is shifting as inflation expectations stabilize and more consumers expect lower interest rates in the next 12 months, but after such a long period of economic uncertainty, confidence in the economy is more difficult to find. In the multifamily market, regional differences in apartment supply continue to impact rent growth, but investment activity is poised to increase across all CRE sectors as the Fed continues the current rate cut trajectory.
Sources discussed in this episode:
CBRE: “Impact of Interest Rate Cuts on Real Estate Cap Rates” - https://www.cbre.com/insights/briefs/impact-of-interest-rate-cuts-on-real-estate-cap-rates
Federal Reserve Bank of New York: “Survey of Consumer Expectations, September 2024” - https://www.newyorkfed.org/microeconomics/sce#/
CBRE: “Are big deals suffering more than smaller ones?” - https://www.cbre.com/insights/briefs/cotw-are-big-deals-suffering-more-than-smaller-ones
Harvard Joint Center for Housing Studies: “10 Major Housing Stories from the Latest ACS Data” - https://www.jchs.harvard.edu/blog/10-major-housing-stories-latest-acs-data
John Burns Research and Consulting: “Slowing immigration set to give a smaller boost to housing” - https://jbrec.com/insights/immigration-slowdown-in-2025-expected-to-decrease-rental-demand/
MSCI: “The What and the When Matter for the Losses of Real-Estate Lenders” - https://www.msci.com/www/blog-posts/the-what-and-the-when-matter/05025154480
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DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. This podcast is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.
