Real Estate, Inflation and Government Policy with Economist Brian Beaulieu | EP132

Working Capital The Real Estate Podcast

Brian Beaulieu is the CEO and Chief Economist of ITR Economics and the Returning Guest from the Episode 67

In this episode we talked about:

• Fiscal Policy Response
• View on Interest Rates Increase
• 2023 Real Estate Trends
• Rental Prices
• Macroeconomic Perspective

Useful links:

https://www.itreconomics.com/

https://www.linkedin.com/in/brian-beaulieu-28481977/

https://workingcapitalpodcast.com/real-estate-inflation-and-government-policy-with-economist-brian-beaulieu-ep67/ - episode 67

Transcription:

Jesse (0s): Welcome to the Working Capital Real Estate Podcast. My name's Jessica Galley, and on this show we discuss all things real estate with investors and experts in a variety of industries that impact real estate. Whether you're looking at your first investment or raising your first fund, join me and let's build that portfolio one square foot at a time. Ladies and gentlemen, my name's Jess for Galley, and you're listening to Working Capital, the Real Estate Podcast. I have a returning guest, Brian Bolio. Brian is the c e o and chief economist of it, t r Economics.

He's also a returning guest from episode number 67. If you want to go check that out. Brian, how you doing today?

Brian (39s): I'm doing well, Jess. How are you

Jesse (40s): Doing? I'm doing great. Always good when I get to talk to a, get a talk real estate with an economist. So nothing's happened since we last spoke episode 67, so I'm thinking about a year and a probably about over, just over a year ago.

Brian (54s): Yeah, nothing's happened since then. You're absolutely right. Oh man. Yeah, long it's been, it's been, I don't know, life still isn't back to normal since the pandemic. We're going through all these covid echoes, this is what I call them. I mean, the, the inflation is a covid echo because it stems from the government's and federal reserve's response to the pandemic. And now we have higher interest rates as an echo because that's stemming from the inflation that stemmed from the pandemic. And those two factors are having other echoes, including through the real estate market.

I mean, we're gonna, we're still years away from being back into normal economics in, in my opinion, and that includes the current yield curve and the extreme extremeness of the yield curve, which can lay directly at the feet of the Federal Reserve. And that isn't going to do any of us any good either. So we're still living with the economic after effects of covid, even though we're running around without masks anymore. We we're bearing the scarves, the economic scarves.

Jesse (1m 58s): And how, if you were to grade the, if the fiscal policy, let's, let's focus on the US for now. How would you grade that? Fiscal re policy response and continued response to the economic environment that we're currently in?

Brian (2m 13s): I graded as C is fairly average, and that with each successive economic crisis, the fiscal policy response has grown disproportionately large at the point now where when we see a fly on the windshield, we don't even think about it. We just grab a sledgehammer to kill the thing. You