The U.S. real estate industry is, in general, expected to be stronger than previously anticipated through 2018, according to the latest economic forecast from the Urban Land Institute’s (ULI) Center for Capital Markets and Real Estate. The ULI Real Estate Economic Forecast, which includes predictions over three years, is based on a semi-annual survey of 48 of the nation’s leading economists and industry analysts. Responses to the most recent survey, conducted in March 2018, suggest that the industry is receiving a boost from the enactment of the Tax Cuts and Jobs Act in December 2017.
Survey participants’ expectations were higher for the U.S. economy as well as the real estate industry than in the previous survey, which occurred in October 2017. Although the outlook for stronger economic growth is accompanied by the likelihood of higher inflation and higher interest rates, the rate hikes are not projected to be detrimental to 2018 real estate returns.