Weekly Review: Real Estate Is Loving The Goldilocks Economy
REITs and Homebuilders continued their 2019 rally on a busy week of earnings and economic data. Low inflation and solid growth continue to provide an ideal ‘Goldilocks’ economic backdrop.
Optimism is high as REITs climbed for the 15th week out of the past 17, a remarkable run of performance that has been aided by stronger-than-expected earnings results this quarter.
Job growth surprised to the upside in April as the jobless rate fell to the lowest level in 50 years. Real wages are rising at the strongest rate since 2009.
The jobs market is powering the best growth in household formations in a generation, setting the stage for a housing market recovery in 2019, but also rising rents.
Construction spending continued to moderate in March as supply growth in the residential and non-residential real estate sectors has cooled, helping to solidify real estate fundamentals across major sectors.