Has real estate been a good hedge against inflation? Will it be in the future?
Real estate cap rates' decline alongside government interest rates over the past 30 years has buoyed returns, with property values at pace with inflation but property net income falling behind. If cap rates begin to rise, appreciation could vanish.
U.S. employers added 222,000 jobs in June, which was above the consensus forecast of 170,000 jobs. Monthly job gains have averaged 194,000 over the past three months. The current unemployment rate is low, but there is no clear trend in overall job generation. Certain sectors, such as health care, continue to see growth. Other sectors, such as construction, manufacturing and transportation, remain flat.