Weekly Review: Real Estate Is Loving The Goldilocks Economy
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- 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.
