What is the Impact of Rising Consumer Debt on CRE
IS A CONSUMER DEBT CRISIS ON THE HORIZON?
Media Focusing On Record High Consumer Debt
Total household debt in the U.S. reached a record $17T in July, while revolving credit surpassed $1T
Inflation adjusting theses figures, brings consumer debt back into perspective
U.S. Economy More Productive Than Ever
Debt levels have risen, but so have incomes and GDP, increasing consumers ability to make debt payments
Consumer loans as a percentage of GDP are trending lower than they have in the past 2 decades
Debt Unlikely To Hold Back Demand In 2023
If consumer confidence continues its upward pace, consumers willingness to spend and form new households should not be restricted by debt burdens
Banking turmoil, Fed decisions, or any number of events could shake confidence, but the current trend is positive
*Through 1Q
Sources: Marcus & Millichap Research Services, Board of Governors of the Federal Reserve System