The real estate market depends heavily on the economy, and any changes to the economy can have a big impact on real estate investments. The demand for and supply of real estate properties can be impacted by economic factors including GDP growth, inflation rates, and employment rates. A strong economy typically increases demand for real estate, which raises home values and rental revenue. On the other hand, a weak economy may result in less demand and less supply, which would affect property values and rental revenue. To minimize risks and maximize returns, real estate investors must continuously monitor the economy and modify their investing plans as necessary.