Declines in Property Pricing Slow Further in January

The annual rate of decline in U.S. property prices slowed further at the start of 2024, MSCI Real Assets said Thursday The RCA CPPI National All-Property Index fell 4.7% in January from a year ago and 0.1% from December. Prices were falling at an annual pace of around 11% in July and August of last year.

“Talk in recent months about potential rate easing by the Federal Reserve appears to have impacted property pricing,” according to MSCI Real Assets. As a case in point, apartment prices dropped 7.9% in January compared to the year-ago period, an improvement from an annual decline of about 14.1% in August 2023.

The industrial sector was the only sector to post positive annual growth in January, rising 1.4% from a year earlier. MSCI Real Assets reported that industrial prices rose 0.2% from December and have posted month-over-month increases since June of 2023.

Outside of industrial, retail was the only property sector to post positive month-over-month growth in prices, rising 0.1% in January. Although retail prices still fell 3.6% from a year earlier, the trend has been improving, with the rate of decline moderating for a sixth consecutive month.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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