Crow Holdings and the Robert and Margaret Folsom Institute for Real Estate at SMU Cox School of Business are pleased to share the latest whitepaper from Director of Research, Mark G. Roberts, in which he dissects current economic trends, compares them to past market cycles, and discusses the resiliency of real estate values.
- There are five key indicators to monitor that can “kill a real estate cycle.”
- While conditions seem ominous today, the U.S. has yet to enter a recession.
- Compared to stocks and bonds, real estate returns have had the highest correlation to growth in GDP over the last 20 years.
- Households are seemingly well situated to weather a slowdown and can support GDP growth.
- Private real estate performs much better when unemployment is declining.
- The stock and bond markets have largely stabilized. If this continues, the so-called denominator effect on private real estate may be waning.