The economy is facing high household debt levels, yet, with consumer strength and job growth, many households remain financially resilient.
Consumer Strength Eases Household Debt Concerns for CRE
- Household Debt Status: Total household debt reached an all-time high by mid-2024, with over 70% housing-related. Fortunately, much of this debt is in low-interest mortgages or home equity lines, easing the impact on most households. Non-housing debt, like auto, student, and credit card loans, continues to rise, affecting households differently.
- Job and Wage Growth: With over 2 million jobs added in the past year, employment is at a record high. Wage growth has also exceeded inflation over the last 12 months, fueling economic resilience.
- CRE Demand Remains Strong: Low household debt service payments keep demand steady across apartments, retail, industrial, and self-storage spaces. Healthier household finances also show promise for leisure travel, boosting demand in hospitality.
Now is the time to act strategically in the commercial real estate market.
Give me a call at 212-430-5230 to discuss how we can navigate these economic dynamics to position your investments for growth.