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4.3 million homes at high risk for wildfires

4.3 million homes at high risk for wildfires

Charted: The Decline of Remote Work by Industry and 12 more real estate insights

Vidit Saxena
March 06, 2025

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Latest Rates

Loan Type	Rate	Daily Change	Wkly Change	Monthly Change	Yearly Change	52-Wk Low/High
30 Yr. Fixed	6.72%	+0.02%	-0.06%	-0.27%	-0.31%	6.11 / 7.52
15 Yr. Fixed	6.18%	+0.00%	-0.06%	-0.19%	-0.34%	5.54 / 6.91
30 Yr. FHA	6.14%	+0.02%	+0.01%	-0.23%	-0.42%	5.65 / 7.00
30 Yr. Jumbo	6.98%	+0.03%	-0.11%	-0.32%	-0.34%	6.37 / 7.68
7/6 SOFR ARM	6.35%	+0.07%	-0.30%	-0.39%	-0.37%	5.95 / 7.55
30 Yr. VA	6.15%	+0.02%	+0.00%	-0.24%	-0.42%	5.66 / 7.03

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Real Estate Trends

2024 net lease sales volume and cap rates link

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Single-tenant net lease sales surged 57.6% in Q4 2024, reaching $13.8 billion, signaling renewed investor confidence. This sharp year-end increase suggests 2025 could see continued momentum.
Cap rates have climbed for nine straight quarters, now averaging 6.78%, reflecting higher borrowing costs and investor caution. 1031 exchange buyers have pulled back, adjusting to the shifting risk landscape.
Industrial properties dominated investment sales, comprising 61.5% of Q3 2024's $10.3 billion volume. Retail saw modest growth, while office properties continued declining for the second consecutive quarter.

More than 4.3 million homes at high risk for wildfires link

Over 4.3 million homes nationwide face high wildfire risk, with a total residential property value of $2.15 trillion at stake. California leads with $1.16 trillion in at-risk property, followed by Colorado ($190.5 billion), Utah ($100.3 billion), and North Carolina ($71.2 billion).
Wildfire threats are expanding beyond the western U.S., with rising risks in the South and Midwest. North Carolina (4.6% of homes at risk), Kentucky (2.9%), Tennessee (2.3%), and South Dakota (11.0%) are seeing increasing exposure.
Insurance coverage is becoming harder to secure, with one in eight U.S. homeowners now underinsured or uninsured. AI-driven risk models helped insurers extend coverage to 511,000 previously uninsurable homes in 2024, with projections to reach 1 million in 2025.

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All-Cash Home Purchases Decline as Institutional Investors Pull Back in 2024 link

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All-cash home purchases dropped to 32.6% in 2024, the lowest since 2021, down from 35.1% in 2023. The decline is driven by fewer investor purchases as the housing market slows.
Florida metros saw the biggest drops, with Jacksonville down 6.4 percentage points, Miami down 3.8 points, and Orlando down 3.4 points. Expensive coastal markets like San Jose, Oakland, Seattle, and Los Angeles also hit record lows.
Some metros bucked the trend, with Pittsburgh, Oakland, and New York showing slight increases in all-cash sales. The trend is unlikely to reverse in 2025 unless mortgage rates drop significantly.

Something I found Interesting

Office demand for larger spaces is back

Total office space leased in the top 100 deals grew by 2.1 million square feet in 2024, reaching 28.9 million square feet. A third of lease renewals expanded, and relocations were mostly to bigger spaces.
Technology companies led leasing activity, signing 29 deals for 9.3 million square feet, surpassing finance and insurance at 4.9 million square feet. AI-related firms and data providers drove much of the growth.
Major markets like Manhattan, Washington, DC, Boston, and Silicon Valley accounted for 57% of total leased space. High-end, mixed-use locations were preferred, but 40% of leases still went to business-centric districts.
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Location Specific

Housing inventory in Florida just hit the highest level on record link

Florida's housing inventory surged 23% year over year, hitting a record 172,209 homes for sale in January. High insurance costs, rising HOA fees, and an influx of new builds are driving sellers to list their homes.
Condo inventory in Florida is at an all-time high, with many owners selling due to soaring HOA fees from new structural regulations. Single-family home inventory is just shy of its record high, adding to market saturation.
Active listings reached 212,437 in January, with eight metro areas—Cape Coral, Deltona-Daytona Beach, Homosassa Springs, Lakeland, North Port-Sarasota, Ocala, Port St. Lucie, and The Villages—hitting all-time highs. Five of these metros are on the coast, where insurance and disaster risks are highest.

Proptech startups that just got funded

OpenMetaCity, a virtual RE platform, raised a $20M round led by GEM Digital.
Cambium, an advanced materials co, raised an $18.5M A round led by VoLo.

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Pro Member Only Content Below

Most of the insights below stem from extra research and include content from paid sources and special reports.

How the real estate brokerage business is changing in 2025