Headwinds generated by geopolitical events over the past year created periods of economic turbulence across the globe, but a strong tailwind fueled soft global economic growth in 2016. US market pundits’ views that a Trump Presidency would reduce regulation and push a largely pro-business agenda generated a year-end boost, and position the U.S. property markets to perform well as we head into 2017. In fact, the Cushman & Wakefield forecasting team recently adjusted their two-year economic outlook upwards. Our team also noted that while the incoming administration is generally viewed as business friendly, uncertainty lingers in the methods by which proposed policies will be executed. Promising GDP growth in the second half of 2016 (2.5-3.0% annualized) and acceleration in national wage growth (2.9% YoY) fuel measured optimism in the property markets. Local job growth of 2.9% over the past year continues to outpace national growth of 1.6%, and drove the unemployment rate to fall 70 bps to 4.1%. Fundamentals have remained intact locally, prompting Raleigh-Durham’s recognition as the No. 7 market to watch (out of 87) on ULI’s annual Emerging Trends Report.
Source : Cushman & Wakefield