Commercial Real Estate & Business News – January 22, 2018

Incredibly, at least for anyone who has lived through previous economic cycles, the current upcycle is now pivoting into its eighth year. And though there have been some concerns and a few negatives in the past year-sandbags on the exuberance, if you will-the overall outlook, especially for commercial real estate, and within that rarified group, property management, points to 2018 as a net positive. …»

The last time that Congress approved a sweeping overhaul of the federal tax code, in 1986, it created a tax credit meant to encourage the private sector to invest in affordable housing. It has grown into a $9 billion-a-year social program that has funded the construction of some 3 million apartments for low-income residents. …»

The wind hasn’t left the apartment sector’s sails just yet, Yardi Matrix said Thursday. The firm’s newly issued US Multifamily Outlook report says the sector will continue seeing growth, “though it will be tepid for the next 18 to 24 months.” Notwithstanding a continued influx of new supply, “We expect that fundamentals will weaken only slightly in 2018, and thus rents will continue their moderate rate of growth,”…»

After five consecutive years of solid gains, home price growth in 2018 is likely to calm down measurably and rise by only 2% on a nationwide basis. Some states will actually experience a price decline, while others will still enjoy large gains. Since 2012, the national median home price has risen by 38% while the constant quality measure of Case-Shiller index has advanced 36%. Over the same time, the median wage rate rose by only 12%. The improving economy, with consistent job gains, has raised housing demand…»

Low unemployment and confident consumers helped fuel one of the most robust holiday shopping seasons retailers have seen in years. Retail sales during the combined November and December period jumped 5.5% in 2017 to $691.9 billion, the largest increase since the 5.2% year-over-year gain in 2010 after the end of the Great Recession, the National Retail Federation said…»