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Cost of Money Tops Counselors List of Biggest Issues Affecting Real Estate
The cost of money, specifically tied to interest rates and the economy, sits atop the list of current issues impacting real estate, as ranked by The Counselors of Real Estate. The organization’s annual Top Ten Issues Affecting RealEstate survey was different this year in that it identified and split out both current and longer-term issues.
The group’s Joseph G. Nahas, Jr., noted, as interest rates rise, the commercial and residential real estate markets are experiencing decreasing demand for commercial property, and higher home mortgage rates. Rate increases also limit value appreciation for commercial real estate and make housing less affordable. Lack of wage growth for all but the wealthiest population segment is dampening housing demand, and limiting consumer spending that the economy needs for growth.
Infrastructure, and more specifically the lack of serious effort by the U.S. to address its condition and much-needed revitalization, ranks at the top of the list of broader, longer-term and emerging issues affecting real estate.
Current Issues (which will impact property today)
1. Interest Rates & The Economy
2. Politics & Political Uncertainty
3. Housing Affordability
4. Generational Change/Demographics
5. E-commerce & Logistics
Longer-Term Issues (today’s issues that will impact decisions over the next 10 years)
1. Infrastructure
2. Disruptive Technology
3. Natural Disasters & Climate Change
4. Immigration
5. Energy & Water
For comments, questions or concerns, please contact Dennis Kaiser
- ◦Economy
- ◦Development
