A pressing issue echoing throughout the commercial real estate world is how inflation will continue to impact day-to-day activity. The latest Consumer Price Index Report seems to offer little reassurance for those worried that the economy may be at risk of a recession — but is the reality as the government paints it? On this week’s Walker Webcast, Walker & Dunlop CEO Willy Walker said that “it clearly seems like we’ve got a Fed misreading the data,” suggesting that housing inflation isn`t growing as fast as the Fed claims. According to the government, housing, which represents the largest component of the CPI at 36%, experienced a 5.7% price increase for multifamily rents and a 5.9% increase for single-family rents, Walker said.
But rather than raw data, the reported 5.9% hike for SFRs was based on a survey of what people would charge to rent their home, he said. Walker & Dunlop’s research group crunched the numbers and found there was only 3.3% in SFR rent growth across the country, a stark difference from what the Fed report suggests...
RSK: Linneman says it`s more of a political thing than economic...I don`t agree. If you own property and have to refinance, it is so much more an economic sting.
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- - Volume: 24 - WEEK: 17 Date: 4/24/2024 11:52:38 AM -