RealPage Economy Express Episode 43

by   Arben Skivjani
  Posted   March 10, 2025
  in   Economy Express ,   Insights

Episode 43: The economy is showing some signs of slowing, with softening employment growth and housing activity, persistent inflation and weakening consumer confidence.

  • Existing-home sales fell 4.9% in January to an annualized pace of about 4.1 million, though sales remained steady in the Midwest. Home sales were up 2% year-over-year, while inventory was up 16.8%.
  • Mortgage interest rates around 7% continued to impact affordability.
  • Home prices were up 3.9% in calendar 2024, according to the S&P CoreLogic Case-Shiller Index. Leading price increases were seen in New York, Chicago and Boston.
  • Total construction spending fell 0.2% in January to $2.19 trillion annually, with private construction down 0.2% and residential spending down 0.4%. Total spending was still up 3.3% year-over-year.
  • The University of Michigan’s Index of Consumer Sentiment plunged nearly 10% in February, driven by a 19% decline in durable goods buying conditions due to tariff concerns.
  • The Conference Board’s Consumer Confidence Index dropped 7 points to 98.3, with the expectations component below the recession warning level for the first time since mid-2024.
  • Personal income increased 0.9% in January, while consumer spending fell 0.2%. The PCE price index rose 0.3% for the month and 2.5% year-over-year, indicating continued inflation pressures.
  • February payrolls grew by 151,000 workers, missing expectations, while unemployment rose to 4.1%. Labor force participation declined to 62.6%.
  • GDPNow estimated a 1st quarter decline in real GDP of 2.4%. That was an improvement from earlier estimates, though trade continues to drag.
  • Tariffs may delay construction projects as imported materials are affected.

For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

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