One Daily Minute
Why watching the FED's Growth Forecast matters to Real Estate Investors
The better a property can perform—the better the returns—for real estate investors.
And the easiest way to make a property perform better, is higher rents.
So why does watching the Fed's growth forecast matter to a real estate investor?
Photo by Alex Bierwagen
The single most important factor to rent growth is employment growth.
The more people with jobs—the more people with spending power.
Offices, retail centers, apartments, self-storages—all get higher demand.
The more demand—without additional supply—the higher rent prices can go.
Higher rent prices equals better returns—for real estate investors.
Another similar important factor is wage growth.
If wage growth accelerates—landlords are able to keep pushing rents.
Rent growth can only outpace wage growth to a certain point. If it's unaffordable, rent stagnates, or drops.
Watching the Fed's growth forecast dictates how employment and wages are doing.
Keep an eye for it.
Employment growth and wage growth are the two most important things—for landlords to push higher rents.
If you own real estate, watching these metrics are keys to pushing your NOI!
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