More than 66,000 Build-to-Rent Units Underway in this area

Estimated read time: 3 minutes 34 seconds.

Mall Traffic Gains Momentum, US Recession Risks Lowered, Construction Employment Rises in Most States link

• Mall traffic in the United States is witnessing a significant upswing, indicating a robust recovery in the retail sector. This resurgence is a positive sign for retailers and mall operators, who have faced challenges during the pandemic.

• The likelihood of a US recession has decreased, providing a more stable economic environment. This reduction in recession risks is a relief for businesses and investors, signaling a potentially healthier economy ahead.

• Construction employment has seen an increase in most states, reflecting growth in the construction industry. This rise in employment is a positive indicator for the overall health of the economy, as it suggests increased activity in building and infrastructure development.

Rental concessions rise as new inventory comes online link

• Rental concessions are increasing, reaching their highest level in two years. This surge is happening despite strong renter demand and rent prices being nearly 30% higher than pre-pandemic levels.

• The rise in concessions is attributed to a surge in new apartment construction, leading to more rental inventory. Property managers are offering more incentives to attract tenants, competing with newer, amenity-rich apartments.

• Cities with recent construction booms, like Austin and Dallas, are seeing significant increases in rental concessions. In contrast, cities like New Orleans, Miami, and New York City have the lowest concession rates.

Solid Apartment Demand Keeps DC Strong link

• Washington, DC stands out as the East Coast's top apartment market performer. In the year ending the 3rd quarter, the city saw robust apartment demand with nearly 8,200 units absorbed, a figure close to the five-year average and one of the highest in the U.S.

• DC's occupancy rates remain stable and above the U.S. norm, hovering around the market's decade average. This stability is notable despite new lease trade-out not being significant in DC, with a 2.3% rate in the 3rd quarter that still surpasses the national average.

• The city has experienced a unique trend in rent growth, with suburban submarkets showing the strongest increases. These areas have seen minimal supply in recent years, contrasting with high-supply urban areas that tend to lag behind the market average in rent growth.

Property Insurance Costs Keep Going Up in South Florida link

• South Florida's property insurance costs have continued to rise in 2023, following significant escalations in 2022. This trend is impacting both residential and commercial properties in the region.

• The increase in insurance costs is attributed to a variety of factors, including the high risk of natural disasters in South Florida, such as hurricanes and flooding. These risks have led to higher premiums and more stringent insurance requirements.

• The rising insurance costs are having a notable impact on the real estate market in South Florida. Property owners are facing higher operating costs, which can affect property values and rental rates.

Housing Market Sees Unusual Inventory Gains in November link

• The U.S. housing market experienced an unexpected increase in inventory in November, a trend not typical for this time of year. Last week's data showed a slight rise in new listings, suggesting that sellers are beginning to engage more actively in the market.

• Florida is leading these inventory gains, with cities like Sarasota, Miami, and Tampa showing significant increases in new listings. This trend contrasts with the more gradual inventory growth in Texas, indicating a market normalization in these regions.

• Despite the increase in inventory, the overall number of transactions remains low, but there are signs of recovery. The median price of single-family homes in the U.S. is currently $428,000, showing a slight increase from 2022, suggesting that the market is slowly moving towards a more balanced state.

Top 10 Affordable Cities for Homebuyers: link

• Despite high national median list prices and mortgage rates around 7.5%, there are still affordable cities for first-time homebuyers. Realtor.com's data reveals homes with yards around $300,000 in certain cities, mainly in the Midwest and South. These areas, while facing economic challenges and population declines, offer a notably low cost of living and inexpensive real estate.

• Many of these affordable cities are experiencing economic growth and job market improvements. For example, seven out of the top ten cities listed have below-average unemployment rates. This growth, coupled with the affordable housing market, makes these cities attractive for first-time buyers and investors alike, who are often drawn by the potential for property renovation and rental opportunities.

• The list of affordable cities includes Toledo, OH; Scranton, PA; Rochester, NY; Detroit, MI; St. Louis, MO; McAllen, TX; Birmingham, AL; Little Rock, AR; Wichita, KS; and Baton Rouge, LA. Each city offers unique attractions and amenities, from historical significance to natural beauty, contributing to their appeal as desirable places to live while maintaining affordability in the housing market.