LaSalle’s June 2021 Macro Indicators

Inflationary Pressure is Building Real estate’s reputation for inflation protection will be tested in the months to come.  Several different types of inflation have already climbed into view:  Asset price inflation came first, followed by a spike in building material and energy costs. Next in line are labour and housing costs, and a broad range of consumer and producer prices that are all experiencing inflationary pressures in 2021.  At this stage in the re-opening of economies, inflation is still a good news story as a wide range of markets are responding to surging demand. The risks and opportunities associated with inflation are more subtle, as we describe in our June macro indicators deck.