The $5.5 trillion stimulus is rippling through the economy.
In a recent company video, John Chang, senior vice president and director of research services at Marcus & Millichap, said that stimulus money is driving wage pressure and inflation. It is also pushing money supply to 26% above pre-pandemic levels.
This liquidity elevation brings both good and bad news, according to Chang. "The good news is that investment real estate tends to be a good inflation hedge as costs rise, real estate rents and values tend to mark to market," he says. "Higher building costs tend to raise property values as it slows construction and raises the replacement costs for buildings. At the same time, revenues at the properties rise as leases and rents are adjusted to market rates."
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
