Tailwinds for Retail and Distribution Centers, by Newmark Grubb Knight Frank
Consumers are not debt free, but households have largely finished the painful process of deleveraging according to the Federal Reserve. Robert Bach, national director, market analytics at Newmark Grubb Knight Frank, explains how consumers will be in a better position to pull the economy forward in the second half of 2013.
The debt service ratio – mortgage and consumer debt divided by disposable personal income (income less taxes) – fell to 10.6 percent in the third quarter, its lowest level since the fourth quarter of 1993.
The financial obligations ratio, which adds automobile lease payments, rental payments on tenant-occupied property, homeowners' insurance and property tax payments to the debt service ratio, fell to 15.7 percent in the third quarter of 2012, its lowest level since the first quarter of 1984.
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