Economy Returns to Pre-Recession Levels, Fueled by Stimulus
- Growth remains steady. In the second quarter, the economy expanded 6.5 percent on an annualized basis.
- Retail and hospitality are real estate’s biggest beneficiaries. As the economy expands and residents take advantage of more options, retailers and tourist destinations are hosting more visitors.
- Consumer spending drives GDP. Personal consumption grew at an annualized rate of 11.8 percent of GDP last quarter.
Headwinds Short-Term Concern
- Rising COVID-19 cases cloud future. The much more transmissible Delta variant of the novel coronavirus is giving policymakers pause and could result in future restrictions that temper the economic recovery.
- Government spending could amplify GDP. A $1.2 trillion bipartisan bill that will fund infrastructure projects over the next several years could support the publicly financed portion of the economy.
* Through 2Q
Sources: Marcus & Millichap Research Services; Bureau of Economic Analysis; National Bureau of Economic Research; Smith Travel Research; U.S. Census Bureau