Dr. Peter Linneman

Some of Linneman’s comments are reflective of similar observations he’s made in the past, namely that some of the metrics used by analysts at the Fed are somewhat magnified and may overstate reality.  Linneman theorized that the Fed focuses too much on the largest component of Consumer Price Index (CPI) wherein housing contributes to 36% their analyses/conclusions. And while multifamily rental expense increased by 5.7% and single family 5.9%, food and energy only increased by 0.2% and 0.1%, respectively. Linneman is predicting that the remainder of 2024 will be challenging for multifamily until supply normalizes and rents adjust. Going forward, Linneman believes the Fed will cut rates between 75 and 200 basis points in 2024. We’ll see.
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