SVN® International Corp. Economic Update – Keeping our clients up-to-date about the latest real estate landscape trends.
Economic signals turned mixed in late May, with the Fed maintaining interest rates amid rising concerns over tariffs, inflation, and recession risks. Consumer confidence improved slightly after a pause on new tariffs, but household spending slowed, builder sentiment weakened, and foreclosure activity increased, particularly among higher-income households reducing major purchases.
In commercial real estate, retail continued to lead with price growth, while industrial and multifamily saw slight declines. Office pricing is beginning to stabilize, though CBDs still face high vacancies and shifting demand toward suburban markets. Despite slower Q1 transaction volume, pricing held firm in sectors like retail and hotels. Independent landlord rent collections also slipped for the second consecutive month.
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