Finance & Economy

Real Estate

Ready for the roaring ’20s? Dr. Peter Linneman on the economic data he’s tracking

July 7, 2021

Ready for the roaring ’20s? Dr. Peter Linneman on the economic data he’s tracking

Dr. Peter Linneman

Leading Economist, Former Wharton Professor

According to leading economist Dr. Peter Linneman, all economic indicators are pointing to a new-age roaring 20s.

According to leading economist Dr. Peter Linneman, all economic indicators are pointing to a new-age roaring 20s!  Watch the latest webcast to get a sense of the data points Dr. Linneman and his team are tracking and his advice on navigating the upcoming economic boom.

The episode begins with Willy introducing Peter by highlighting just a few of Peter’s predictions that have been accurate in the previous year, before transitioning to the current state of affairs. Although the COVID infection numbers are currently the best we have seen since pre-Covid, Peter says there are still two wild cards to look out for: variants and the time it may take for the rest of the world to be vaccinated. Labor shortages will continue to make reopening rocky until government unemployment expires in September.  

Then, Peter gives insight into the future of inflation, hourly wages, and supply and demand. In short, many businesses have learned to make do with less employees without taking too big a hit in profit, a strategy which will likely continue. Additionally, many people who moved away from cities like New York at the start of the pandemic will end up moving back.

Willy and Peter then transition to discuss housing and auto industries. Looking at the last 20 years in both the housing and auto markets, the underproduction is evident. Skyrocketing single family home prices are thanks to this underproduction rather than high interest rates. There is also a major shift in values of millennials today compared to their parents’ generation when it comes to buying a home and settling down.

Regarding predictions moving forward, Peter expects us to enter a “roaring 20s” soon. The health of the U.S. household is reflected in the unprecedented amount of money in the banks, which points to a boom similar to the one in the 1920s. Peter outlines just a few factors that will play into this boom and how asset values will go up. Listen as he delves even further into how to take advantage of this unique opportunity. According to Peter’s predictions, we are undoubtedly in for a roaring asset and employment market with inevitable ups and downs.

In closing, Willy asks Peter to determine the one thing he will be keeping his eyes on moving forward. He stresses that this doesn’t come from a Democrat or Republican standpoint, but if tax policy went crazy, it would severely hurt the economy. Luckily, Peter doesn’t think this will happen.

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