Apartment’s Share of Wallet: Despite quickly rebounding rents, Apartments taking only modest share of wallet.
Apartment’s Share of Wallet Despite quickly rebounding rents, Apartments taking only modest share of wallet. July 2021 The recovery in apartment demand is skewing toward higher income households, helping to hold down rent-to-income ratios despite quickly rising rents. Across Class A assets owned and operated by GID, rent-to-income ratios were about 21% in the second quarter,1 virtually unmoved from pre-Covid levels. GID’s Class […]
Transaction Volume Is Back… For Apartments and Industrial Properties: More Liquid Markets Separate this Recession from Those Past.
Transaction Volume Is Back… For Apartments and Industrial Properties: More Liquid Markets Separate this Recession from Those Past. Transaction markets in the aggregate have been quiet, with volumes down 30% in 2020 from year ago levels (which set a record at $438 Billion).1 The second and third quarters of 2020 were especially quiet, aligning with the […]
The Undersupplied U.S. Housing Market: A lack of inventory stifles homebuying and pushes prices higher – positives for the rental market.
The Undersupplied U.S. Housing Market: A lack of inventory stifles homebuying and pushes prices higher – positives for the rental market. Despite the Pandemic, the for-sale housing market has been “hot” with existing home prices in November up 8% from year-ago levels1. It should be even hotter. Barbell demographics of retiring baby boomers and a growing pool of 30-somethings should be driving sales of single–family homes at a more robust clip. Further, mortgage rate drops typically pull demand forward, and […]
Pandemic Outlook: Light Industrial Demonstrates Resilience in the Face of Covid-19 Economic Shock
Pandemic Outlook: Light Industrial Demonstrates Resilience in the Face of Covid-19 Economic Shock The impact of the pandemic has been wide-reaching, touching every aspect of our lives. It is affecting where and how we work, with whom we interact, and where we feel comfortable purchasing our necessities of daily life. The fear and uncertainty evoked […]
Bond Yields at Record Low: Relative to BBB Bonds, CRE Looks Historically Cheap
Bond Yields at Record Low: Relative to BBB bonds, CRE looks historically cheap The Fed was prepared to move quickly, applying hard lessons learned during the financial crisis 10 years ago to support credit markets during the economic shock of the pandemic. These efforts complement pre-CoVid trends of structurally low bond yields that reflected relatively […]
Household Incomes Up Despite the Pandemic: Headline Income Numbers Mask Underlying Economic Weakness; High Frequency Data May Be A Head Fake.
Household Incomes Up Despite the Pandemic: Headline income numbers mask underlying economic weakness; high frequency data may be a head fake. Swift and unprecedented fiscal stimulus through the CARES act has boosted household incomes and put a floor under consumption…at least in the short term. The combination of $270 billion in one-time stimulus checks and […]
Limited Parallels: Unprecedented Economic Disruption, But The Pandemic Has Limited Parallels With The Last Recession…Especially For Commercial Real Estate
Limited Parallels: Unprecedented economic disruption, but the pandemic has limited parallels with the last recession…especially for commercial real estate
The Global Pandemic: Unprecedented Economic Disruption Is Met With An Unprecedented Policy Response. CRE Should Hold Up Relatively Well
The Global Pandemic: Unprecedented economic disruption is met with an unprecedented policy response. CRE should hold up relatively well Unprecedented Economic Shutdown Current job losses are an intentional transfer of payroll from private to public sector – in the short term, incomes are more important than unemployment Traditional econometric models are less valuable in this […]
The Great Moderation: Persistently Low Interest Rate Environment Expected, Supporting Asset Values
The Great Moderation: Persistently low interest rate environment expected, supporting asset values Interest rates in the U.S. have been falling steadily since the 1980s, and real rates have been near zero during much of the expansion following the GFC. Notably, interest rates peaked during the early 80s, when the Baby Boomers were entering the work […]
Well-Heeled Renter Households Soar: The Combination Of Lifestyle Choices And High Barriers To Homeownership Has Led To Booming Growth In Middle- And High-Income Renter Households.
Well-Heeled Renter Households Soar: The combination of lifestyle choices and high barriers to homeownership has led to booming growth in middle- and high-income renter households. In the first eight years of the expansion, the pool of middle- and high-income households increased by more than 8 million. The growth rates were particularly impressive for high income […]