AEW expects the U.S. economy to avoid a recession in 2026, but the firm says growth is slowing as higher energy prices weigh on consumers, according to its latest U.S. economic and property market outlook.
The report, titled The Search for Growth, Â says inflation is likely to reaccelerate in the near term because of higher energy costs, but underlying inflation should continue to cool as wage growth and shelter inflation decelerate. AEW also expects the Federal Reserve to remain on hold amid uncertainty, though a gradual easing cycle toward year-end remains possible if headline inflation rolls over and growth stays soft.
For U.S. commercial real estate, AEW says the market is moving from a prolonged period of value stagnation to selective value improvement. Transaction volume in the first quarter accelerated to pre-COVID levels and was consistent with 2019 levels, though still below the recent p
