Federal Reserve: Real estate and construction part of summer economic activity growth

The Federal Reserve released its latest Beige Book on Thursday and the news was encouraging. All of the 12 Federal Reserve Districts saw either moderate or modest economic growth in July and August.

The Seventh District, which covers Chicago, saw moderate growth that is expected to continue to through the rest of the year. Read the full report but here are some of the real estate/construction highlights for the Chicago district:

  • Residential home sales, prices, and rents were up.
  • Higher mortgage rates may be stimulating home sales as buyers try to lock in lower rates and a drop in existing home inventory is pushing prices higher, according to contacts in the district.
  • Rents continue to rise with some areas getting back to pre-recession levels.
  • Commercial real estate conditions also continue to improve with rents rising and vacancies falling.
  • Residential and nonresidential construction grew during the time frame.

 

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