By Victor Calanog, Ph.D., CRE®
Each year, the CRE® External Affairs Committee engages The Counselors of Real Estate®’s membership to determine which issues will influence the real estate industry most significantly, both in the near-term and in the long-term.
Counselors (CRE®s) are prominent real estate practitioners who pass a rigorous screening process recognizing their expertise, experience, and ethics in providing advice that influences real estate decisions. They come from a wide array of professional backgrounds — from valuation, consulting, law, brokerage, and asset management to development, investment, lending, and corporate real estate. The Top Ten Issues Affecting Real Estate™ represents the collective experience of Counselors – experts in their fields known for innovation and creative problem-solving.
1. Interest rates & The Economy
The Federal Reserve’s plan is to nudge interest rates back to historically normal levels. Concurrently, the passing of The Tax Cut and Jobs Act has enacted fiscal stimulus through deficit spending. As expansionary fiscal policy collides with tightening monetary policy, some speculate increased Federal borrowing could crowd out private entities from the debt market, while those who successfully secure financing face higher interest rates.
2. Politics & Political Uncertainty
Geopolitical uncertainty, The Tax Cuts and Jobs Act, and potential trade wars are policies with the potential to affect real estate indirectly. However, some policy changes have more direct implications for real estate, particularly in the regulation of community banks. The new law relaxes some requirements of the Dodd-Frank Act, adjusts rules regulating HVCRE, and reduces HMDA data requirements.