Consumer sentiment readings have negatively impacted household formation, which in turn, has affected apartment demand, as well as having other implications in commercial real estate.
Marcus & Millichap's John Chang said investors must not confuse "consumer confidence" with "consumer sentiment." The latter is a measure of a person's finances.
"People are concerned about inflation and recession risks," Chang said. "That's sentiment. When sentiment is low, they are less likely to rent a new apartment, buy a new house, or purchase furniture or electronics."
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
