NPLA Meeting Recap: JBREC Mid-Year Housing Market Update

During the latest NPLA meeting, Devyn Bachman, the COO of John Burns Research & Consulting (JBREC), provided a mid-year market update. Bachman’s talk touched on aspects of the economy focusing on trends in job growth, inflation, and the housing industry.

Economy

The Federal Reserve is currently maintaining interest rates at a steady level to prevent an economic downturn. This strategy aims to ensure a “soft landing.”

Recent data suggests a slowdown of the job market. While immigration has driven growth, JBREC anticipates a decrease in immigration and employment expansion. This shift is predicted to have a positive influence on the economy.

Currently we are seeing the lowest year-over-year Consumer Price Index (CPI) growth rate since March 2021. Housing plays a major role in inflation; however, there has been a decline in the owner’s equivalent rent, which could lead to an overall decrease in inflation in the coming months.

Housing Market

In the real estate market, existing and new homes inventory has risen. Despite this inventory increase, prices have increased by 5% year-over-year, with new construction outperforming resale properties.

The rental market has exceeded expectations and successfully absorbed some of the housing supply. With a growing population and migration trends, people are opting to rent instead of buy. Renting is often viewed as the more cost-effective option in many markets.

To read the full mid-year update, visit NPLA.