SVN® International Corp. Economic Update – Keeping our clients up-to-date about the latest real estate landscape trends.
The latest economic update reveals rising recession concerns among Fed officials amid tariff-related uncertainty, while inflation and labor market conditions remain in flux. Retail real estate continues to lead in price growth, but industrial and apartment sectors show signs of slowing. Office pricing is stabilizing, especially in suburban areas, despite high CBD vacancies. Q1 investment volume declined, though multifamily and office sectors showed pricing strength.
Consumer trends were mixed—spending slowed among high earners, but confidence rose slightly in May. Builder sentiment dropped to its lowest since late 2023, and foreclosure activity edged up. Rent payment rates among independent landlords declined, while retail sales saw only modest growth following a strong March, driven by pre-tariff purchases.
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