These are tough times everywhere. Uncertainty (from Trump's tariff war, but also middle east and Russia conflicts), upward pressure on interest rates and cap rates, and a fall in consumer spending post Covid highs are hitting a lot of economies around the world. Low employment growth and layoffs are consistent factors in many economies.
Your evidence from across the US shows how widespread and consistent the challenges are.
If we look back to the 1970s to 1990s, waves of uncertainty and interest rate and inflation volatility also made for employment and income instability. I fear we're back there now.
For IPP real estate: all about keeping a steady income flow. Which means asset and location selection have never been more important, alongside sound operations.
Yes, tough times are everywhere. The U.S., however, is unique for inflicting much of the damage. The Trump administration's tariff policy, military actions in the Americas, and war in Iran restrict global growth and increase inflation. At home, the aftermath of these actions plus the violent approach to mass deportations reduce economic activity in real time, while restricting foreign interest in travel, study, and migration to the U.S. today, and in the future.
We found the U.S. labor market weakness is not concentrated by industry or location, it is everywhere. It is also the worst job growth at this stage of the business cycle in 30 years. These conditions will persist until U.S. policy changes and will likely worsen until changes are implemented.
On a real estate note, I missed seeing you at ULI. My favorite quote was from a panel on international investment opportunities, when in response to an audience question on whether the U.S. was investible, a panelist simply said, "No." Honest af, I loved it. The response was from an investor with holdings and development in Asia and Canada. Are you noticing impacts to foreign capital flows and/or pricing in Canada given the mess down here?
These are tough times everywhere. Uncertainty (from Trump's tariff war, but also middle east and Russia conflicts), upward pressure on interest rates and cap rates, and a fall in consumer spending post Covid highs are hitting a lot of economies around the world. Low employment growth and layoffs are consistent factors in many economies.
Your evidence from across the US shows how widespread and consistent the challenges are.
If we look back to the 1970s to 1990s, waves of uncertainty and interest rate and inflation volatility also made for employment and income instability. I fear we're back there now.
For IPP real estate: all about keeping a steady income flow. Which means asset and location selection have never been more important, alongside sound operations.
Yes, tough times are everywhere. The U.S., however, is unique for inflicting much of the damage. The Trump administration's tariff policy, military actions in the Americas, and war in Iran restrict global growth and increase inflation. At home, the aftermath of these actions plus the violent approach to mass deportations reduce economic activity in real time, while restricting foreign interest in travel, study, and migration to the U.S. today, and in the future.
We found the U.S. labor market weakness is not concentrated by industry or location, it is everywhere. It is also the worst job growth at this stage of the business cycle in 30 years. These conditions will persist until U.S. policy changes and will likely worsen until changes are implemented.
On a real estate note, I missed seeing you at ULI. My favorite quote was from a panel on international investment opportunities, when in response to an audience question on whether the U.S. was investible, a panelist simply said, "No." Honest af, I loved it. The response was from an investor with holdings and development in Asia and Canada. Are you noticing impacts to foreign capital flows and/or pricing in Canada given the mess down here?