The 10-year Treasury inched past 3 percent, drawing concerns from some investors. Strong economic momentum, however, reiterates the health of the current economic cycle which bodes well for all sectors of commercial real estate.
Market Trends
Underlying demand for apartments remains strong as a robust labor market and positive demographic trends support healthy unit absorption, despite mounting supply pressure. Moving forward, modest performance gains are expected on the national level as the market continues to digest the aggressive development pipeline.
Investor optimism strengthened as recently enacted tax laws and economic durability sustain market confidence. Commercial real estate outlook remains positive.
Rising home prices, rising mortgage rates and rising demand are colliding with a critical shortage of homes for sale. And all of that is slamming housing affordability.
While rallies in oil and metals—from aluminum to nickel—faltered during the week, big gains have spurred increased speculation that inflation will pick up.
Agency lenders are making more permanent loans than ever on apartment properties.