Sentiment Soars in the Real Estate Industry According to RCLCO's New Report
Mid-Year 2021 Market Sentiment Increased 57.5 Points
BETHESDA, Md., June 24, 2021 /PRNewswire/ -- Leading real estate consulting firm RCLCO released the results of their Real Estate Market Sentiment Survey for Mid-Year 2021, which has tracked confidence in U.S. real estate market conditions for the past 10 years. The results reflect strong optimism as the nation reopens:
- RCLCO's Real Estate Market Sentiment Index (RMI), which measures sentiment on a 100-point scale, has increased 57.5 points over the past six months, from 31.6 at YE 2020 to 89.1 at Mid-2021. Says co-author Kelly Mangold, "The degree of rebound in sentiment is impressive, to levels not seen since 2015."
- Respondents predict that real estate market conditions will remain largely consistent in the near future, with the RMI anticipated to drop only 7.8 points to 81.3 over the next 12 months. This is still well above the long-term (since 2011) average of 68.8.
- 75% of survey respondents believe real estate conditions will be moderately or significantly better in the next 12 months.
- 7 out of 10 respondents indicate that rising construction costs are having a significant impact on the market. Going forward, higher costs are likely to temper somewhat, though still remain a factor in 12 months.
- Respondents indicate that most product types have moved from contractionary phases to expansionary phases in the real estate cycle since the YE 2020 survey. Retail and office remain at the bottom of the cycle, and hospitality has reached early expansion. However, all three sectors are expected to return to Early Recovery within the next 12 months.
- Looking ahead, a majority of respondents expect interest rates to rise, capital flows to increase to real estate, and homeownership rates to rise. However, there was less consensus over the expected performance of cap rates over the next 12 months.
Read the full report: https://bit.ly/3d6V88v
About RCLCO Real Estate Consulting
Since 1967, RCLCO has been the "first call" for real estate developers, investors, public institutions and non-real estate companies seeking strategic and tactical advice regarding property investment, planning, and development. RCLCO leverages quantitative analytics platforms and a strategic planning framework to provide end-to-end business planning and implementation solutions at an entity, portfolio, or project level. RCLCO is headquartered in Bethesda, MD, and has offices in Los Angeles, CA, Orlando, FL, and Austin, TX. Learn more at www.rclco.com
SOURCE RCLCO
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