As Covid restrictions ease across the United States, hospitality and leisure-focused businesses must now contend with a new risk—stubborn, elevated inflation that could further curb recovery in the travel industry. The war in Ukraine has driven up global oil prices, pressuring already high U.S. energy ... READ MORE >
Real estate
Real estate to remain strong in face of interest rate bump
The Federal Reserve on Wednesday boosted interest rates by a quarter percentage point, leaving many landlords and real estate fund managers to wonder how the increase will affect their operations and bottom line. Fortunately, no one needs to ring the alarm. With the cost of capital remaining low, ... READ MORE >
U.S. new home sales declined in January
New home sales dropped 4.5% in January as high prices and increasing mortgage rates slowed demand, according to data from the Census Bureau on Thursday. The omicron variant and colder-than-usual weather in January also contributed to the decline. As a result, inventory levels increased to 6.1 months of ... READ MORE >
Chart of the day: Buyers rush into housing market before rate hikes
Investors with all-cash offers flocked into the housing market before rate hikes, helping to push sales of existing homes to 6.5 million in January at an annualized rate, according to data released on Friday by the National Association of Realtors. The share of investors jumped 5 percentage points on ... READ MORE >
Chart of the day: U.S. housing permits reach 15-year high
Housing supply showed no sign of slowing down in January despite a decrease in starts because of the omicron surge. The one-time impact—which has subsided quickly—caused housing starts to decline by 4.1% in January to 1.638 million from 1,708 million in December on an annualized rate. But housing ... READ MORE >
How construction firms can manage a fractured supply chain
Two years into the pandemic, the construction industry is still grappling with the fallout of the economic shock as builders scramble to secure raw materials and the workers to keep their projects on track. The whipsaw change over the past two years has fragmented the construction supply chain, ... READ MORE >
Property conversions could answer the call for more multifamily housing
It’s no secret there is a shortage of rental apartments in the United States. A slowdown that began during the financial crisis of 2007-08 depleted supply, and the problem has been exacerbated by the supply chain woes of the coronavirus pandemic. Residential construction, which sped up to meet the ... READ MORE >
The hot housing streak endures: Spring 2022 outlook
The housing market, while strong, is hampered by limited supply. Home affordability is set to be challenged by rising interest rates. Builders continue to be constrained by the limited supply of materials and their rising costs. Read about other sectors The spring housing market might not be as ... READ MORE >
The future of office requires sun, flexibility and creativity: Spring 2022 outlook
Class A offices in the Sun Belt are gaining in popularity, reflected by higher prices. Flexible offices are emerging amid an uptick in remote and hybrid work. Conversions to industrial and residential space will continue to absorb excess office capacity. Read about other sectors The arrival of ... READ MORE >
From distress to recovery, hospitality avoids worst-case scenarios: Spring 2022 outlook
Business travel, while recovering, has suffered amid pandemic restrictions. Rising room rates nationwide are a worrisome trend consumers are watching. Labor presents significant challenges to hospitality, and new incentives are important. Read about other sectors As the pandemic appears to be ... READ MORE >