US CRE Faces 11-Month Real Home Price Slide as Construction Spending Falls 2.7%
Updated
Updated · marketscale.com · Jul 19
US CRE Faces 11-Month Real Home Price Slide as Construction Spending Falls 2.7%
3 articles · Updated · marketscale.com · Jul 19
Summary
June payrolls rose just 57,000, while nonfarm job growth averaged 36,000 a month over the past year after 74,000 in revisions, reinforcing weaker demand assumptions for office, hotel and retail landlords.
May JOLTS showed a 3.3% hires rate and a 1.9% quits rate, signaling limited labor mobility and little support for expansion-driven leasing as borrowing costs stay elevated.
April home prices rose 0.8% nominally but fell in real terms for an 11th straight month; Chicago gained 6.5% while Seattle dropped 2.3%, widening regional splits in multifamily underwriting.
Through May, US construction spending totaled $858.4 billion, down 2.7% from a year earlier, with manufacturing construction off 22.0% and commercial down 5.5%, tightening future supply pipelines.
Consumer confidence edged up to 91.2 in June, but the present-situation gauge fell to 116.4 and the expectations index stayed below 80 for a second month, pointing to softer spending-sensitive CRE sectors.