UCLA Anderson Forecast Sees the Economy Moving Ahead — For Now
The overall economy appears to be growing at a steady pace, but there are potential threats that could affect the United States and California economic outlooks.
REAL ESTATE FORECAST
The Best of Times and the Worst of Times for Housing
The outlook for housing over the next few years depends upon where you live and how you live.
June 2018 Economic Outlook
The national economy remains strong with real GDP growth approximating 3% this year. However, a tightening labor market accompanied by rising inflation and higher interest rates will cause growth to slow in 2019 and 2020. Further increased trade tensions combined with trillion dollar deficits will add to economic uncertainty as the decade ends.
In Residential Real Estate, although house prices have more than recovered from their previous peaks over a decade ago, housing activity as measured by starts and existing home sales has not. What gives? Why haven't we witnessed a full recovery given the strength in the broader economy? The forecast will attempt to answer these questions and whether or not the boom in apartments rents and multi-family construction will continue.
- How low will the unemployment rate go?
- How high will the Fed increase interest rates?
- How strong will the defense spending boom be?
- Will trade tensions spill over into the broader economy?
- California economic growth has slowed the last few months. Does this portend a trend?
- How will rising interest rates affect residential construction in California?
- How do housing prices impact migration and vice versa across the country?