Between March 8 and May 1, 2023, four regional banks failed, representing three of US history’s four largest bank failures. While regulators and political figures declared the crisis over, we will likely see ramifications for some time. With all bank failures, concerns about its impact on real estate investments exist.
Despite solid job numbers in the first quarter, economists upgraded the likelihood of a recession in 2023 to 64%. Recent bank failures and the move by the Federal Reserve to continue increasing interest rates somewhat explain why projections rose from 58% in February. Only 18% of economists put recession odds
President Biden proposed a Renter’s Bill of Rights to grant renters more legal protections. It is not currently the law of the land but could impact future real estate investments. The proposed bill has five principal objectives. Objective 1: Provide Renters Access to Safe, Quality, Accessible, and Affordable Housing The
Affordable housing has become a buzzword in Washington. The battle cry includes more control over rents private landlords charge, eviction restrictions, less discrimination, and increased oversight of rental markets. All that proposed oversight generally translates into fewer protections and higher operating costs for property owners. But before concluding that real
The last three years were a gold mine for investors in short-term rentals. Lenders approved loans based on projected revenue, and Airbnb and other intermediaries connected property owners with vacationers and remote workers, providing insatiable demand to fuel profits. In 2020 and 2021, demand for second homes surged due to
In the past 12 months, the Federal Reserve raised interest rates by 4.5%, intending to bring down inflation, which reached 40-year highs. Prior to that, interest rates were sitting comfortably near zero. As of the February 2023 FOMC meeting, the current rate rose between 4.5% and 4.75%. While this is
When nearly every market experiences record rent growth and appreciation, it’s easy to find attractive real estate investments. However, as rent rates fall and property values stall, success will require having the right systems to identify and uncover those that will continue to be profitable for investors. Individuals purchasing a
Every economic climate produces winners and losers. In 2008, at the start of the Great Recession, bonds took the top spot. In 2020, the year of the Pandemic, large-cap growth stocks performed the best. The following year it was REITs that produced the highest gains. In those same years, international,
Real estate investing can be a haven during uncertain economic times. Values do not trend with the stock market and can serve as a hedge against inflation. The challenge is often not whether it is a good time to add real estate to your portfolio but where is the best
Between high levels of market volatility, rising interest rates, and a looming recession, this year’s portfolio review might become more about protecting assets than maximizing gains. As you measure success and look for ways to mitigate risk, here are a few critical areas to consider: Performance: What’s Working and What’s
