SVN® International Corp. Economic Update – Keeping our clients up-to-date about the latest real estate landscape trends.
The September 11, 2025 Economic Update highlights key shifts in the U.S. economy as inflation, labor, and real estate markets adjust to changing conditions. The Consumer Price Index rose 0.4% month-over-month and 2.9% year-over-year, keeping inflation slightly elevated but in line with forecasts. Meanwhile, job growth slowed sharply in August with only 22,000 new positions added and unemployment climbing to 4.3%. Job openings also hit their lowest level since September 2024, underscoring a cooling labor market. At the same time, logistics activity picked up slightly due to inventory expansion, though transportation demand softened.
Commercial real estate performance has been mixed across asset types. Office absorption turned negative again in Q2, multifamily stabilized but faces elevated vacancies, and retail softened despite maintaining the lowest sector vacancy. Industrial absorption fell to a decade low as oversupply and weak demand weighed on the sector. Lumber prices dropped to a 52-week low, signaling slower homebuilding, while apartment rents declined for the first time since January. Still, small multifamily valuations are improving, lending activity is rebounding, and falling mortgage rates have boosted homebuyer purchasing power, pointing to selective resilience in housing and investment markets.
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