SVN® Internation Corp. Economic Update – Keeping our clients up-to-date about the latest trends affecting the real estate landscape.
Recent data signals a notable 8.0% year-over-year drop in commercial real estate (CRE) valuations, with apartments taking a considerable hit at -13.7%. Meanwhile, the industrial sector sees a modest 1.2% growth.
Looking ahead to 2024, the Emerging Trends in Real Estate (ETRE) Report highlights economic and financial concerns, including interest rates and capital availability. Socially and politically, housing costs and availability are key worries, with construction labor costs a primary concern for development.
The property type outlook for 2024 shows multifamily properties leading with the most favorable investment prospects, followed by single-family housing and industrial properties. Notably, the outlook improves for multifamily, single-family, and retail assets compared to the previous year.
In the housing market, the Wells Fargo NAHB Housing Market Index indicates worsening conditions, reaching its lowest point in November 2023. The Northeast fares better, but overall, high prices and a surge in interest rates contribute to the decline.
Click below for additional economic highlights from the NFIB Small Business Optimism Index, BLS Consumer Price Index, and more!
