Over 100,000 LA Residents Could be Homeless by 2028 Olympics

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Weekly Housing Trends —Data for Week Ending Aug. 10, 2024 link

• The median list price fell by 0.2% year over year, marking the 29th consecutive week of sub-1% annual growth. Despite a 3.1% increase in price per square foot, sales have skewed towards larger, more expensive homes, contrasting with flat overall list prices.

• New listings dropped 2.2% compared to the same week last year, reflecting continued seller reluctance due to high mortgage rates and economic uncertainties. Many potential sellers are hesitant to enter the market, holding out for greater stability.

• Active inventory rose 35.5% year over year, continuing a 40-week trend of increasing supply, but homes are staying on the market 5 days longer than a year ago. The extended market time indicates a gradual shift towards a more buyer-friendly environment.

Over 100,000 LA Residents Could be Homeless by 2028 Olympics link

• LA’s homelessness crisis is severe, with 69,000 people currently without homes—more than any other U.S. city. This figure is projected to surpass 100,000 by 2028.

• For every 207 people who exit homelessness daily in LA, 227 more become homeless, fueling the ongoing crisis.

• Women experiencing chronic homelessness in LA may see their lives shortened by 35 years on average, and men by 28 years, indicating the severe health impacts of this crisis.

• The McKinsey report suggests that increasing affordable housing is crucial but insufficient alone; a multi-faceted, large-scale approach is necessary to address different groups' specific needs.

Tappable home equity reaches new high of $11.5 trillion: ICE link

• Tappable home equity in the U.S. has reached a record $11.5 trillion, driven by rising home values. This is a significant increase from the $10 trillion mark at the end of 2022.

• Homeowners are accessing this equity more cautiously compared to pre-2008 levels, reflecting a shift in financial behavior. Despite the equity boom, the volume of cash-out refinances remains lower than past peaks.

• States like California, Florida, and Texas contribute significantly to this equity surge, given their high property values. However, higher interest rates are deterring some homeowners from tapping into their equity.

Rent Concessions Rise Amid Elevated Supply link

• A surge in multifamily construction has led to an oversupply in several markets, forcing landlords to offer rent concessions. These incentives include free rent for several months or reduced deposits to attract tenants.

• The trend is especially pronounced in Sun Belt cities like Austin, Phoenix, and Nashville, where the volume of new apartment deliveries has outpaced demand. Rent growth in these areas has stalled or even declined as a result.

• Despite the oversupply, overall vacancy rates remain relatively low nationally. However, continued elevated supply levels may lead to further rent concessions in the coming months.

Mortgage refinancing surges 35% in one week as interest rates hit lowest level in over a year link

• Refinance applications jumped 35% last week, reflecting a significant reaction to mortgage rates that have been dropping steadily over the past month. They are now up 118% compared to the same week last year.

• The slight decrease in the 30-year fixed-rate mortgage to 6.54% has not dramatically increased home purchase activity, which rose by just 3% and remains 8% lower than a year ago.

• Homebuyers are cautious, anticipating further potential drops in mortgage rates while also contending with high home prices and limited inventory. The refinance share now constitutes nearly 49% of total mortgage applications.

Rural seniors aging in place creating shortage of home care workers link

• Rural areas are facing a critical shortage of home care workers as more seniors choose to age in place. The limited availability of services leaves many elderly individuals struggling to find adequate care.

• The demand for home care workers is outpacing supply, particularly in states with significant rural populations like Maine and West Virginia. This shortage could lead to increased hospitalizations and higher healthcare costs.

• Challenges in recruiting home care workers include low wages, long travel distances, and fewer benefits. These factors make the profession less attractive, exacerbating the existing shortage in these regions.

Hotel Investment Sales Plunge in California link

• California hotel investment sales have dropped by 48% year-over-year, reflecting significant market slowdown. Rising interest rates and economic uncertainty are deterring potential buyers.

• High operating costs and tighter lending conditions are putting additional pressure on the hospitality sector. The drop is particularly stark in major markets like Los Angeles and San Francisco.

• Despite the overall decline, certain markets in Southern California are showing resilience with relatively stable sales figures. Investors are cautious but still keeping an eye on well-located, high-demand properties.

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Visualized: GDP Growth Projections for Key Economies (2024-2025)

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