SVN® International Corp. Economic Update – Keeping our clients up-to-date about the latest real estate landscape trends.
The October 2025 economic update highlights growing signs of a cooling U.S. economy, with labor market weakness taking center stage. Private payrolls fell for the second consecutive month, marking the first back-to-back decline since 2020, while job postings on major hiring platforms continued to slide. Minutes from the September FOMC meeting revealed that policymakers are increasingly worried about softening employment and revised job data, prompting a 25-basis-point rate cut despite lingering inflation concerns. The latest Beige Book confirms a near-stagnant national economy, with most districts reporting flat or declining activity, while small business optimism fell as supply chain pressures and inflation persisted.
Across key sectors, sentiment and activity remain mixed. Consumer confidence held near historic lows, homebuilder sentiment stayed weak with rising price cuts, and logistics activity slowed despite continued expansion. Foreclosure filings rose 17% year-over-year in Q3, though monthly data suggests potential stabilization ahead. Self-storage rents ticked upward after months of decline, led by Midwest markets, while new supply remains concentrated in metros like Phoenix and Tampa. Meanwhile, retail sales stayed flat, with “invisible inflation” eroding consumer purchasing power as spending holds steady but unit volumes fall.
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