American Realty Advisors

Private real estate can offer stable income and protection against inflation in periods of economic uncertainty.?

Women from across ARA joined together to celebrate International Women’s Day and its theme of #AccelerateAction. The WE Network met virtually to discuss When Women Lead: What they Achieve, Why They Succeed, and How We Can Learn from Them by Julia Boorstin. Thank you to all of the inspiring women at ARA who participated!?

Consumer expectations of inflation jumped up to 4.3% in February, sparking renewed concerns about the path of inflation and interest rates going forward. In contrast, the outlook from businesses is a much more muted 2.3%. So how should investors be thinking about inflation going forward given these seemingly different signals? When consumers expect higher inflation, it can sometimes be self fulfilling. Consumers may pursue raises or bring forward purchasing to avoid paying higher prices later, both of which can contribute to actual inflation. Neither has materialized yet. In fact, recent data suggests that if not for the top 10% of earners, consumer spending would likely be soft. This may be a function of higher prices biting middle- and lower-income households and layoffs prompting more hesitation in asking for wage increases. While we do believe inflation pressures remain, we do not expect it to breach the 4% threshold. What this means for interest rates is a continuation of the cautious Fed approach and the slow, start-stop easing we’ve seen over recent months. Sabrina Unger Britteni Lupe

The number of households considering a move in the next year has increased 24% from its low point in December 2022. We think this household mobility may drive greater rental demand, given the inventory and affordability barriers in the for-sale market. Read more about our outlook for the residential sector in our H1 2025 House View. https://lnkd.in/g2MtpDyV

Halfway through the first quarter of 2025, the haze that had been clearing on inflation, policy, and the economy through the end of 2024 has threatened to roll back in. Despite the uncertainty, we believe real estate is still poised for recovery. Click through for our Mid-Quarter Economic Pulse.?

New capital markets cycles tend to bode well for real estate returns – we think the next few years will be similar, given an improving financing backdrop and strengthening fundaments. Read more about our outlook in our H1 House View. https://lnkd.in/g2MtpDyV

Major declines in the supply pipeline may help improve industrial fundamentals in select cities – some markets’ supply under construction has dropped by as much as 80%. Read more on our property markets outlook in our recently released house view. https://lnkd.in/g2MtpDyV

What’s in store for the property markets? With fundamentals improving but lesser cap rate compression anticipated, we expect to maintain a diligent focus on cash flow preservation in the near term and a targeted deployment strategy in the months ahead. Click through to see our sector-specific outlooks or follow the link to read our full House View. https://lnkd.in/g2MtpDyV

The uncertainty of the last two years is moving into the rear-view. In our H1 2025 House View, we examine the signs of positive momentum and outline our forecast for the economy and its impact on real estate investing. Click through to read more. https://lnkd.in/g2MtpDyV #realestateinvesting #cre?

We wish you all a happy, healthy, and prosperous 2025. Happy New Year!