Consumer sentiment readings have negatively impacted household formation, which in turn, has affected apartment demand, as well as having other implications in commercial real estate.
Marcus & Millichap's John Chang said investors must not confuse "consumer confidence" with "consumer sentiment." The latter is a measure of a person's finances.
"People are concerned about inflation and recession risks," Chang said. "That's sentiment. When sentiment is low, they are less likely to rent a new apartment, buy a new house, or purchase furniture or electronics."
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