NIC Leadership Huddle: Real Estate Market Trends and the Economic Outlook

NIC’s 2022 Leadership Huddle series continued May 25 with a deep dive into real estate market trends and an outlook on economic forces. Beth Mace, chief economist and director of outreach at NIC, was joined by Mike Acton, managing director of AEW Capital Management, and Mary Ludgin, head of Global Investment Research at Heitman, to discuss navigating federal monetary policy shifts, investment strategies amid record inflation, and opportunities in senior housing segmentation.

With the Federal Reserve raising the federal funds rate, Acton explained that now is the time to remember that these cycles happen, and experience should inform investment. "There’s a playbook – we know what we’re supposed to do as these events unfold,” he said. Ludgin added that experience with these cycles suggests investment is still possible: “In that environment, you can invest through debt as opposed to equity.”

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Evolution of Market Segmentation
June 8, 2022 at 1:00 PM ET

To combat the strongest inflation rate in 40 years, Ludgin explained that real estate is in a much better position than stocks and bonds. As supply and demand balance out, senior housing should prove to be an effective inflation hedge, according to Ludgin. Acton agreed, explaining that real assets are key to making smart investments and fighting future inflation.

Discussing the future of senior housing, Mace explained that diversification and segmentation in the industry present a number of opportunities for investors and developers. “It’s an exciting time in senior housing because you’re seeing a lot of change,” Mace said.

“There’s a lot of good opportunities for debt providers, equity providers, as well as operators.”

NIC Leadership Huddles reconvene June 8 with a timely discussion on market segmentation. Join us as “in the know” experts Melissa Andrews, Tom Gaston, and Ashley Fitzgerald discuss the continued evolution of the senior housing sector. Register today. And, watch all past leadership huddles in the NIC Leadership Huddle Archives.