Equity Yield Group

https://lnkd.in/geaGk-ng.globest.com%2F2024%2F11%2F07%2Fthese-regions-will-see-the-highest-multifamily-rent-growth-in-2025%2F%3Fslreturn%3D20241108-24452&utm_campaign=aga&utm_source=agsadl2%2Csh%2Fx%2Fgs%2Fm2%2F4

The election is over. We now have a direction instead of uncertainty. However, I would like to remind everyone. The President does not control the economy or the markets. The economy and the markets are controlled by the behavior of their participants. The only role government can play is to enact policy that changes the incentives of consumers, producers, and investors. Pay close attention to the incentive the government creates, and where they spend. The most recent jobs reports shows the massive government participation in the labor market. the latest GDP report shows the massive role government defense spending has in total U.S. GDP. We are not out of the woods yet. Hiring rates are falling, demand for fuel oil is falling, manufacturing is falling, car sales are falling, housing inventory is growing, consumer savings are dwindling, mortgage deliquencies are increasing. The glass is both half full and half empty. Opportunities can always be found in times of changes and transition, so long as you have your eyes open and see the glass as half full. Pay attention to the data and not the narrative, and when opportunity presents itself be prepared to take action.

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CRE Loan Modifications Surge as Maturity Wall Looms https://lnkd.in/gVbrWGZ6

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Real Estate is only valuable when people need real eatate. When real estate is overbuilt the surplus is worthless. it's not like overproducing consumer goods . if you over produce corn the price comes down a little and the market absorbs the surplus. Real estate is not a consumable product. like the production of cars it works best with a "just in time" delivery model where supply precisely meets demand at the time of demand. The Problem is production of real estate is not an efficient assembly line. it's slow and complicated. because of this it is very easy to over build, as you start building under demand conditions today but you will deliver into demand conditions 1-2yrs in the future. Demand is elastic and shifts quickly. look at office buildings. office once had robust demand, then work from home happened and now you literally can't give away a vacant office building. real estate is also a major part of not only the economy, but also household net worth. China has overbuilt real estate and it is now having profound negative effects on their economy. China pumps half a trillion dollars into beleaguered property sector. But that’s not enough https://lnkd.in/gPG-VXKJ

Multifamily Investors Unemployment will be the most important factor investors over the next 18 months. Unemployment is highly correlated with rent growth. Every time unemployment spikes rents go down. If you are invested in property keep an eye on the local employment market. You can monitor layoffs at WARNtracker.com. As you are looking for new investments make the local employment market one of your key metrics. Look for markets with low unemployment, high hire rates, diversification of employment, and recession resistant jobs. Property values are are down a discount levels but market selection will determine a good buy from a amazing investment. Be sure to check out warntracker.com, and the bureau of labor statistics www.bls.gov