Monday, April 30, 2012

Interesting Real Estate Stats

Here are some sobering statistics from the indispensable economics blog Calculated Risk
Office investment as a percent of GDP peaked at 0.46% in Q1 2008 and then declined sharply.  Investment as a percent of GDP fell to a new low in Q1 and is now down 64% from the peak.

Investment in multimerchandise shopping structures (malls) peaked in 2007 and is down about 68% from the peak and at a new low in Q1 (note that investment includes remodels, so this will not fall to zero).

Lodging investment peaked at 0.32% of GDP in Q2 2008 and has fallen by about 82%.

Notice that investment for all three categories typically falls for a year or two after the end of a recession, and then usually recovers very slowly (flat as a percent of GDP for 2 or 3 years). This is happening again, and there will not be a recovery in these categories until the vacancy rates fall significantly.
Click on the link above to see graphs that correspond with the above statistics.


2 comments:

Anonymous said...

People just don't have the funds and four years later, are things really better than 08-09??

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