In today’s latest survey of real estate statistics showed a large increase in expected economic growth, most likely due to federal proposals to change the tax code, decrease regulatory burdens, and invest in infrastructure. Compared with the same survey from half a year ago, real estate agents have larger expectations about overall domestic product growth, read on to learn why!
- U.S. GDP will grow by 2.3 percent in 2017 and 2.6 percent in 2018, increases of 20 and 60 basis points (bps), respectively, since the last forecast.
- Real estate transaction volumes will fall to $450 billion in 2017, a decline of $39 billion (8 percent) from the 2016 level. The 2017 forecast is unchanged from the fall forecast.
- Industrial rent growth is forecast to average 3.8 percent, followed by office (2.3 percent), hotels (2.3 percent revenue per available room [RevPAR] growth), retail (2.2 percent), and apartments (2 percent).
“Compared with the same survey from six months ago, real estate economists have higher expectations about gross domestic product (GDP) growth, employment growth, and housing starts.”