Rocky Road Ahead for the U.S. Real Estate Sector as Demand Slows and Pressures Grow

Higher-for-longer interest rates remain a key headwind for real estate in 2024. [...]the transaction market for most property types has slowed to a trickle, as potential sellers and buyers are often far apart on price. [...]real estate transaction volume remains low and will likely not recover until...

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Bibliographic Details
Published inReal Estate Taxation Vol. 51; no. 2; pp. 3 - 4
Main Author Lai, Ana
Format Trade Publication Article
LanguageEnglish
Published New York Thomson Reuters (Tax & Accounting) Inc 01.01.2024
Subjects
Borrowing
Consumer spending
Costs
Discounts
Economic activity
Federal Reserve monetary policy
Funding
Interest rates
Macroeconomics
Real estate financing
Recessions
REITs
United States > US
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Summary:Higher-for-longer interest rates remain a key headwind for real estate in 2024. [...]the transaction market for most property types has slowed to a trickle, as potential sellers and buyers are often far apart on price. [...]real estate transaction volume remains low and will likely not recover until rates start to decline (or at least stabilize), perhaps toward the end of 2024, thereby limiting REITs' ability to raise capital through asset sales. [...]the credit quality of many office REITs has deteriorated significantly.
ISSN:1538-3792