An Unprecedented Scenario in the US Real Estate Market

The US real estate market is currently experiencing a unique and unprecedented situation where the economy is robust, but real estate is underperforming. This atypical occurrence is linked to rising interest rates, marking a distinctive shift from historical trends. While typically, falling interest rates lead to improved returns and accelerated appreciation in real estate, the current environment involves adjusting to a scenario of higher interest rates. Despite the challenges, there are promising opportunities in both debt and equity real estate markets by adapting prices and structures to the evolving market conditions.