3 Economic Trends to Watch
In the complicated era of coronavirus uncertainty, economic events change rapidly. Here are a few recent news trends that may have an outsized impact on real estate investing in coming months.
Post-pandemic GDP growth going downward?
Economists polled by MarketWatch predicted that GDP will expand at an annual pace from July to September. Now, with the surge in coronavirus cases in largest U.S. states contributing to GDP – California, Texas and Florida, the estimates are likely to be revised down.
Big corporations leaving cities
As demand for suburban real estate increases, larger companies are considering moving away from urban office locations. The main skepticism around this is that there is less corporate-grade space in suburban locations for headquarters to be moved. Additionally, suburb-to-suburb commuting is difficult to scale. So the trend is not set in stone.
Millennial aging signals continued demand for homeownership
Millennials are the most educated generation in U.S. history, which is a good sign for future housing demand. Meanwhile, young people are entering a new life phase that makes them more likely to need the space of a single family home. This demographic trend suggests an increase in the rate of homeownership.