Job growth rebounds in March; pace of hiring moderating. Removed from the disrupting effects of the partial government shutdown and winter storms, U.S. employers created a combined 196,000 jobs last month, well above the 33,000 personnel who were added to payrolls in February. Employment gains for the first quarter bring the average monthly total to 180,000, down 19 percent from the first quarter of 2018. The decline in hiring is in line with the current… Read More

Retail spending slows amid economic concerns. A moderating economy became more evident in February as core retail sales advanced 2.9 percent annually, following a revised gain of 4.3 percent one month earlier. Unresolved trade tensions as well as a weakening international economy continue to weigh on domestic growth, straining retail sales in the process. Over the past few months, spending habits have been sporadic as they moved with shifting levels of consumer confidence.

Interest rates fall as Fed shifts policy outlook. At its latest meeting, the Federal Reserve signaled an end to rate hikes this year, while reserving the potential for one increase in 2020. The Fed also announced its intention to end the runoff of its balance sheet, a process referred to as quantitative tightening. These steps have coincided with considerable financial market volatility and robust demand for Treasurys, which has pushed the 10-Year Treasury below the… Read More

Amazon, Google Expansions Highlight Increasing Tech Presence, Driving Apartment Demand in Boroughs Announcements by tech giants set stage for next phase of growth in New York City. Following the recent announcements by Google and Amazon to undertake vast expansions of their office foot-print and workforce, the New York City metro has set the stage for robust growth stemming from the tech sector. While Google will be expanding in Lower Manhattan, Amazon has opted for Long Island… Read More

Opportunity Zones, areas in each state where Qualified Opportunity Funds can invest gains from other investments into real estate and businesses to defer and reduce capital gains taxes, were introduced as part of the Tax Cuts and Jobs Act in December 2017.

Persistent job growth and broad employment base support robust apartment demand. Fueled by the largest population base in the county, the NYC economy remains on solid footing. A host of industries, including a vibrant startup scene, have generated consistent job growth, boosting demand for apartments. As supply increases reached a cycle high in 20176, rent growth slowed as developers utilized incentives to fill new proprieties,s particularly along the East River in Brooklyn and Queens. The… Read More

Unemployment continues to decline, including for those with a degree. The number of unemployed people in the U.S. fell by 270,000 last month to just under 6 million. The last time fewer people looked for work was in December 2000. Last month’s job growth pushed down the unemployment rate 20 basis points to 3.7 percent from the previous month. For those with a four-year college degree, the rate dropped 10 basis points to 2.0 percent, its… Read More

Though mortgage interest rates remain historically low, the average 30-year fixed rate reached its highest level since 2011. Rising mortgage rates in conjunction with home values that have appreciated more than 64 percent over the same time period are discouraging many potential homeowners from making offers due to their inability to afford mortgage payments. Because of the rising costs, the pace of sales has declined each month since March. The increasing costs of homeownership, as… Read More

Rising interest rates, midterm elections spark equity market volatility. The stock market suffered its second largest single-day decline of the year on Wednesday, Oct. 10, contributing to a 4 percent weekly drop. Simultaneously, the S&P Volatility Index (VIX), a measure of how quickly equity markets are moving, rose from 15 to 24 in the past weeks, indicating a strong market sell-off. Both were precipitated by long-term interest rates rising rapidly earlier this month, carrying the 10-year… Read More

Commercial real estate investors coma into 2018 riding a high following approval of the Tax Cuts & Jobs Act. Yet the latest NREI/Marcus & Millichap Investment Sentiment Survey shows that the bounce in positive sentiment that occurred in the wake of tax reform has now drifted back to levels in alignment with this time last year.