Global Real Estate & Economy Brief — 2026-02-06 - Daily Global Real Estate & Economy Brief

🌍 At a Glance

Why Building Alone Won’t Solve the Housing Crisis — Rising insurance costs and housing type imbalances hinder progress in addressing the housing crisis, as highlighted by two recent reports.
Why Are Home Purchase Cancellations on the Rise? — Home purchase cancellations surged by 14.9% in December, with over 40,000 agreements terminated compared to the previous year.
They Made the Basement the Most Attractive Part of the House — An architect has successfully converted his Washington, D.C. rowhouse's unfinished basement into a luxurious in-law suite.

Home Office says nearly 60,000 people deported from UK or left voluntarily since 2024 election — The Home Office reports nearly 60,000 migrants have been deported or left the UK since the Labour government took office.
No 10 defies calls to sack Morgan McSweeney over Mandelson appointment — Downing Street stands by Morgan McSweeney amid calls for his resignation over the controversial Mandelson appointment.
Trump waters down criticism of UK’s Chagos Islands deal after call with Starmer — Donald Trump has softened his stance on the UK's Chagos Islands deal, calling it the "best" decision by PM Keir Starmer.

Amazon joins Big Tech AI spending spree — Amazon's shares declined after announcing substantial AI investments, raising investor concerns about the tech sector's spending.
Bitcoin falls to lowest value since Trump took office — Bitcoin's value plummeted to its lowest since Trump's presidency, despite his endorsement of the cryptocurrency.
Bank hints at rate cuts, but don't expect Covid-era mortgage deals — The Bank of England hinted at potential rate cuts, but warned against expecting mortgage deals as favorable as during the Covid era.

**Position in Multifamily REITs**: Invest in multifamily REITs to capitalize on rising rental demand amid housing imbalances. *Risk: Economic downturns may impact rental income stability.*
**Explore Homebuilder ETFs**: Consider homebuilder ETFs as cancellations may lead to reduced supply, potentially stabilizing prices. *Risk: Continued economic uncertainty could further dampen demand.*
**Invest in Renovation-focused Funds**: Target funds focused on home renovations and conversions, like in-law suites, to benefit from evolving housing needs. *Risk: Regulatory changes may affect renovation projects.*

**Position in UK Residential REITs**: Increased migration may boost demand for rental properties. Risk: Potential policy changes affecting immigration could alter demand dynamics.
**Invest in European Infrastructure ETFs**: Government stability and migration trends may drive infrastructure investment. Risk: Political controversies could impact funding and project timelines.
**Consider Macro Hedging with Currency ETFs**: Softening political stances may affect GBP stability; hedge against currency fluctuations. Risk: Market sentiment can shift rapidly based on political developments.

**Position in Defensive REITs**: Consider investing in healthcare and residential REITs to hedge against tech sector volatility and potential economic slowdown. Risk: Interest rate fluctuations.
**Diversify with Bond ETFs**: Allocate funds to bond ETFs to capitalize on potential rate cuts by the Bank of England, while mitigating equity market risks. Risk: Inflation may erode returns.
**Explore Stable Commodities**: Invest in commodities like gold as a hedge against Bitcoin volatility and economic uncertainty, providing a safe haven for capital. Risk: Price fluctuations based on global demand.

Not financial advice. Educational insights only.

#RealEstate #Housing #Macro #US #Europe #Asia