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Chart of the Day: Treasury vs. Real Estate

Samuel A. Kiburz, Senior Vice President, Chief Investment Officer Nov 15, 2023
10-year treasury rate in yellow, the CAP, Capital Asset Pricing, rate in blue

Contents

Today’s Chart of the Day comes from Re:venture Consulting and shows the history of the 10-year treasury rate (in yellow) vs. the CAP, Capital Asset Pricing, rate (in blue). The CAP rate is the percentage return that real estate investors receive after all expenses, divided by the cost of those investments. Normally, as long as anyone can remember, due to the risks and work involved with real estate, investors demanded a higher return than treasuries. Recently, this has not been the case, which means something has to change. Either treasury rates will have to fall or returns on real estate will have to increase. For real estate, rents will have to go up or real estate prices will have to fall. Time will tell.
Chart of the Day

About the Author

Samuel A. Kiburz, Senior Vice President, Chief Investment Officer
Samuel A. Kiburz, Senior Vice President, Chief Investment Officer

Samuel serves as Senior Vice President, Chief Investment Officer for the Crews family of banks. He manages the individual investment holdings of his clients, including individuals, families, foundations, and institutions throughout the State of Florida. Samuel has been involved in banking since 1996 and has more than 20 years experience working in wealth management.

Investments are not a deposit or other obligation of, or guaranteed by, the bank, are not FDIC insured, not insured by any federal government agency, and are subject to investment risks, including possible loss of principal.

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