June Economic Commentary: Consumers bearing the brunt of policies’ unintended consequences

John Beuerlein 
Chief Economist 
Pohlad Companies

The Federal Reserve’s declaration of war on inflation has increased market volatility as investors position themselves for the anticipated economic slowdown resulting from the Fed’s tighter monetary policy. Except in a few instances, it is too soon to see the impact in economic data; however, consumer spending indicates an imbalance between supply and demand. The Fed’s actions are focused on slowing demand for products and services, but the supply side of the economic equation also continues to aggravate inflationary pressures.

Why Multifamily Real Estate is a Good Hedge Against Inflation? 

With inflation already a major concern, investors are looking for ways to protect their portfolios or even benefit from rising costs. One asset class that is becoming increasingly popular as an inflation hedge is multifamily real estate. The multifamily sector has some unique benefits, making it an exceptionally attractive investment.

Ability to Adjust Rents: The leases in multifamily properties typically last only one year, which allows property owners to respond quickly to inflationary pressures and adjust rents accordingly.

Necessity-Based Asset Class:  Multifamily real estate is a necessity-based asset and hence it is less likely to lose value during an economic downturn than other types of assets. Most people will pay their rent before paying for other expenses 

Maximizing Returns Through Value-add: The value of multifamily real estate is soaring, but investors can still find great opportunities by using a value-add strategy. This strategy allows an investor to purchase an underperforming property at a discounted price and significantly increase its value through renovations, improved management efficiencies, and rising rents.

Growing Demand: Home prices have increased dramatically over the past 18 months, and many signs point to this trend continuing. This is great for homeowners but bad for buyers, many of whom cannot afford to purchase a home. Since owning a home has become increasingly unattainable for many people, demand for rental units in multifamily properties has increased.

James Kandasamy

Your Guide to Home Staging

If you are beginning your home selling journey, first and foremost, congratulations. While undoubtedly stressful, this is also an exciting time, and I want to ensure you’re equipped with the tools you need for your journey.

According to the National Association of REALTORS® (NAR), homebuyers’ expectations are higher than ever before. Whether this is because of ever-popular home design television shows or easy access to home design inspiration, potential buyers arrive at showings with every intention of finding exactly what they have imagined. 

Deliberate and thoughtful home staging enhances your property’s unique features, ensuring your home stands out from other listings. Through proper staging, the physical landscape of the home becomes highly enticing to potential buyers who can already see themselves living there. Small changes here and there can have a huge return on investment and play a major role in differentiating your home.

When buyers are eager to jump at a house that they can imagine themselves calling home, why not do what you can to deliver it to them? With this in mind, Engel & Völkers and I are excited to present our new Home Staging Guide.

The Home Staging Guide

In the pivotal time before listing your home, reach out to real estate professionals and interior designers to make it the best debut possible. As a top advisor with Engel & Völkers, I know what home buyers are really searching for and the most effective ways of presenting homes. Within our Home Staging Guide, we have compiled key tips, tricks, and hacks into one comprehensive guide—just for you.

What to Expect Inside

The Home Staging Guide details the nuances of optimizing your home for buyers’ imagination. Doing so will protect the memories you have made, increase the value of your home, decrease the time spent on the market, and prepare you for your next chapter as best as possible. With the help of our Staging Guide and expert advisors, you can expect: 

  • Industry observations on what buyers expect to find.
  • Access to insider tips and tricks.
  • The resources to build a bespoke staging strategy.