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.
A solid burst of hiring last month culminated a strong first quarter for the U.S. labor market.
Exceptional payroll growth in July and upward revisions to job gains in the preceding two months underline the persistent strength of the U.S. economy, which is now in its seventh year of expansion. Secondary indicators of labor market activity, including unemployment claims, the unemployment rate and wage growth, reinforce the strengthening trend and diminish some of the negative mixed signals in other economic data points. The combination of positive labor market trends will support additional… Read More
January hiring fell short of expectations but gains aligned to support commercial real estate.
U.S. employers pushed ahead with hiring plans in December to top off a strong year of job creation. The vigor of the U.S. labor market evident throughout 2015 will enable the Federal Reserve to place greater weight on inflation trends in guiding its monetary policy decisions this year.
The substantial jump in hiring during June to the highest monthly level this year suppresses talk of a sharp slowdown in job creation and strongly reaffirms that the U.S. economy remains on a growth track. Although last month’s survey occurred before the unexpected outcome of the Brexit vote, secondary employment indicators including initial unemployment claims and elevated job openings point to a stable labor market and prospects for further growth.
Declining unemployment claims and job openings near an all-time high point to an expanding labor market, not one that is losing momentum as suggested by weaker-than-anticipated job creation in May.
Employers demonstrated the strength of the U.S. labor market in February as it continued to shrug off lingering global economic uncertainty and softness in oil and gas industries. Jobs were created in multiple service sectors of the economy and at government agencies during the month, helping to maintain gauges of labor market capacity at tight levels. While wage growth continues to search for a stimulus that will impart greater traction, the U.S. labor market nonetheless… Read More