On today’s show we’re taking a closer look at what it takes for the Bureau of Labor and Statistics to declare their numbers for GDP, and ultimately when they declare that we are in a recession. Why is this important for real estate investors?
Well, interest rates keep rising because inflation is high and the economy is strong. The economy is strong is the part of that narrative that is continuing to fuel inflation expectations in the eyes of the Fed.
We know intuitively that the economy in Nebraska is different than the economy in California. So knowing that fact, we could conceive it possible that one state could be in economic expansion, while another is in economic contraction.
We’ve long said that real estate is hyper local. So too is the economy. Does the local state data give us any insight into economic contraction on a national basis?
Host: Victor Menasce