Yield Curve Inversion and Employment Trends: Predicting the Next Recession
JACKSONVILLE, FL - The yield curve inversion is often seen as a reliable predictor of economic recessions, with a history of signaling downturns approximately 6 months to 2 years before they occur. However, its reliability is sometimes overstated, as a [...]
Federal Reserve vs. ECB Interest Rates: Impact on US Real Estate Markets
JACKSONVILLE, FL - Examining the relationship between interest rates set by the Federal Reserve and the European Central Bank (ECB) provides crucial insights into economic conditions and their impact on real estate markets. Although there is a strong correlation in [...]
Predicting Multifamily Housing Trends Using Building Permits
JACKSONVILLE, FL - New apartment construction has only experienced drastic year-over-year (YoY) declines once since 1996, which occurred during the Great Financial Crisis (GFC) in 2010. This research examines the predictive relationships between the issuance of building permits for multifamily [...]
The Relationship Between Construction Employment and Apartment Prices
JACKSONVILLE, FL - The construction sector and housing market are critical indicators of economic health and consumer confidence. This article explores the nuanced relationship between construction employment—a proxy for the sector's vitality—and apartment prices, particularly through the lens of economic [...]
The Inaccuracy of Inflation Expectations: A Critical Analysis
JACKSONVILLE, FL - The reliability of inflation forecasts has dominated discussions on both Wall Street and Main Street recently, impacting our economy and influencing policy decisions. It's commonly believed that inflation expectations, particularly official forecasts, can reliably predict future inflation [...]
Understanding SOFR and Treasury Yields in Multifamily Real Estate
JACKSONVILLE, FL - In the realm of multifamily real estate, two critical indicators are the Secured Overnight Financing Rate (SOFR) and the market yield of a ten-year Treasury note (DGS10). This article delves into the correlation between these two rates [...]