Hurricane Harvey wrought severe damage across the Tex-as Gulf Coast region and southwest Louisiana. The severe storm displaced thousands of families as it damaged in excess of 200,000 homes across the region. The hurricane’s devastating ﬂoods hit the nation’s ﬁfth-largest metropolitan area, Houston-The Woodlands-Sugarland, and although the ﬁnal assessment of damages is likely months away, it is possible that Houston faces many of the challenges Hurricane Katrina created in New Orleans.
Following the rounds of quantitative easing that pushed the Federal Reserve’s balance sheet to $4.5 trillion, the Federal Reserve has outlined plans to reduce the size of its holdings. This will accelerate its effort to move toward more normalized monetary policy following nearly a decade of easing. Although the Federal Reserve has raised short-term interest rates four times since the financial crisis took them to zero, the balance sheet has remained consistently near $4.5 trillion… Read More
The commercial real estate market may face gradual softening with signs that investors are proceeding more cautiously on new investment.
Job creation and household formation underpin apartment demand. Boasting a diverse range of industries and professions, New York City establishments remain steady job creators, even as the pace of employment growth has moderated in recent years. Meanwhile, extensive development pipeline dominated by Brooklyn, Manhattan and Queens. With more than 35,000 units slated for delivery in 2017, builders remain highly active in the metro.
As unemployment reaches a 16-year low, job creation is restrained. This tight labor market offers a mixed outlook for commercial real estate.
New-home sales are building momentum as entry-level buyers re-engage in homebuying.
The employment market consistently signaled steady economic growth last year despite numerous unanticipated events that could have upended the expansion. Additionally, the tightening labor market achieved accelerated wage growth as average wage growth jumped 2.9 percent since last December.
Apartment investments remain well positioned entering 2017, though several important macro-level dynamics have begun to shift course. The November election set in motion a range of fiscal, monetary, regulatory and economic changes that will merit close investor attention. Prospective modifications to tax laws, a rising interest rate environment and upward revisions to economic forecasts could all influence investor behavior, while rising apartment completions will also generate a dynamic landscape. While the outlook points to another… Read More
Job creation still supporting positive outlook; robust delivery schedule weighs on vacancy and rent growth. New jobs are consistently being created in the New York City economy, even as the pace of hiring has slowed over the past year. As a result, demand for local housing has remained high, particularly in the core areas of Manhattan and Brooklyn where mortgage payments are far above rental rates. As a result, multifamily development has risen to a… Read More
Vacancies tighten in the Third Quarter despite elevated completions and investors broaden their acquisition criteria.