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.