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 homeownership rate is at a 12-year low due to young households favoring apartments.
Fed rate increase following March’s meeting signals confidence in the economy yet reinforces investor caution and the slowing of investment real estate transaction activity.
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
As the single-family housing supply falls to a record low, a tight market strengthens apartment demand.
Broad-based and robust hiring during January extends last year’s labor market momentum thus offering an upbeat commercial property outlook.
Investors Dial Back Transactions Amid Murky Policy Outlook, yet clarity and healthy fundamentals will likely revive activity.
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.