Chart Of The Month: Real Estate Dry Powder

Our Managing Director, Steve LaTerra, specializes in the capital markets and has seen money targeting real estate more than double since 2012. The amount of dry powder (cash reserves) has been steadily increasing since 2014. In fact, more money is chasing real estate opportunities today than at any time in history.  However, over the last several years, much of the money raised for real estate investment went into apartments, industrial and other cash flowing asset classes.

Very little capital was directed to land and homebuilding which has led to the significant housing shortage today.  While the downside risk of an investment in housing is limited, the threat of recession and the memories of 2009/2010 are keeping much needed capital out of homebuilding today.