U.S. economy to continue supporting real estate market
The U.S. economy will continue to support demand for real estate in 2019, reports UBS in its U.S Real Estate Outlook 2019 report. Even if the pace of growth in real GDP is a little slower than 2018, the momentum is positive and the labor market is strong. Additional findings from the report include:
Labor market: Strength in the labor market is an important driver of demand for real estate. In 2018, the United States added an average of 200,000 jobs per month. UBS expects another 2 million jobs, or around 165,000 jobs per month, to be added in 2019.
U.S. consumers: 11 years after the start of a global financial crisis, U.S. consumers are optimistic, fueled by a tight labor market, according to UBS. UBS sees consistent growth in consumption and higher retail sales. Consumers who expect to be able to maintain employment and enjoy higher wages should be able to absorb slightly higher inflation, including the ability to accept ren