SVN® International Corp. Economic Update – Keeping our clients up-to-date about the latest real estate landscape trends.
In July’s economic update, inflation edged upward with the Consumer Price Index rising 0.3% month-over-month and 2.7% year-over-year. Tariff-related price pressures became more visible, particularly in goods like appliances and apparel. The Fed’s Beige Book noted sluggish growth in most regions, with persistent weakness in manufacturing and commercial real estate. National rent collections fell for the fourth consecutive month, and residential housing activity remained subdued, despite an uptick driven by discounts. Meanwhile, apartment completions declined but remained elevated, particularly in markets like Dallas, New York, Phoenix, and Austin.
Office sector challenges deepened, with national vacancies reaching 19.4% and lenders tightening extension policies as more loans near maturity. Senior housing saw occupancy gains and solid rent growth despite supply constraints. Foreclosures increased 5.8% year-over-year, while retail and dining traffic continued to surpass pre-pandemic levels, driven by consumer preference for discount and specialty retailers. June retail sales rose 0.6%, beating expectations and offering a modest signal of resilience in consumer spending.
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