News
IMG Attends the 2024 Leadership & Economic Summit
Portland, OR — November 14, 2024 — Members of the Investors Management Group (IMG) team attended the 13th Annual Leadership & Economic Summit, hosted by Xenium HR and Umpqua Bank in Portland, Oregon. This year’s event included a keynote by renowned economist Dr. John Mitchell, former Chief Economist of U.S. Bancorp, alongside top executives sharing valuable insights on the rental housing market.
Dr. John Mitchell provided an in-depth analysis of changing economic dynamics and their influence on the post-election environment. The event’s insights spanned a range of topics crucial to understanding the 2025 U.S. economic landscape.
Multifamily Investment Trends: Key Insights
2025 Economic Indicators
A federal deficit at 6.4% relative to GDP is the largest during an economic expansion since WWII. The S&P 500’s rise of 26% year to date reflects investor optimism and resilience in major U.S. companies, particularly within sectors like technology and consumer discretionary, which have performed well in 2024. Mitchell shared that employment has risen for 55 of the past 56 months since May 2020, though recent months showed a decline in job openings. The Fed’s goal to provide an economic ‘soft landing’ is on target so far.
The Post-Election Housing Market
The median age for first-time homebuyers has reached 38, with only one-third of Millennials purchasing homes by age 30, compared to half of Boomers at age 30. Given affordability challenges for home buyers, Mitchell underscored the critical role occupied by apartment investors like IMG in providing diverse housing options for local communities.
Policy Response to the Pandemic, Inflation and the Climate
Mitchell discussed how government economic policy since 2020 set the scene for historic interest rate hikes by the Fed. The CARES and ARPA Acts injected more than $4 trillion into the economy and spurred inflation rates not seen since the 1980s. Inflated housing and consumer goods costs were a factor in the recent presidential election.
Inflation and Federal Response
“Will Federal Reserve Chair Jerome Powell join the pantheon of heroes such as Paul Volcker, Alan Greenspan, and Simone Biles?” Mitchell asked, receiving a few quizzical looks before a round of laughs when he clarified, “She gets rewarded for her soft landings.” Addressing the Federal Reserve’s response to inflation, Mitchell stressed the challenge of achieving a 2% target without triggering economic instability. Move too soon and risk the inflation goal, wait too long and induce weakness, or change the target and lose creditability. He likened the economy’s trajectory to turning an aircraft carrier—highlighting the complexity and time required for change.
IMG’s Commitment to Vertically Integrated Multifamily Solutions
Guided by the firm’s 2024 motto, Recharting the Course, IMG is strategically navigating the current real estate cycle with a focus on creating lasting value for thousands of renters across the U.S. and for its 1,000 investor clients. With Dr. Mitchell joining other multifamily experts in projecting steady economic growth in the near term, IMG remains committed to enhancing rental housing and driving meaningful improvements for both local neighborhoods and the broader economy.
About Investors Management Group
Founded by Neil Schimmel, IMG is a nationally acclaimed real estate investment and asset management firm highly specialized in apartment communities. Our mission is to create vibrant, sustainable living environments through strategic investments and a commitment to community development. With a network of over 1,000 accredited investors, we strive to enhance the quality of life for our 5,000+ tenants nationwide and support the growth of local neighborhoods. IMG’s culture is characterized by innovation and a steadfast commitment to creating value in multifamily investments. Earlier this year, the firm received its second “Commercial Real Estate Visionary” Award from the Los Angeles Times. Learn more