75%+ of Airbnb rentals disappeared in NYC

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75%+ of short-term Airbnb rentals disappeared in NYC link →

• New York City's Local Law 18 led to a dramatic reduction in short-term Airbnb rentals, with over 75% disappearing since its enforcement. Only one-third of the 6,395 registration applications were approved, causing this sharp decline.

• As short-term listings fell, long-term Airbnb rentals in NYC surged by 50%, with 93% requiring stays of at least 30 days. This reflects hosts' shift to comply with the law and continue earning.

• Airbnb’s challenges aren’t limited to NYC; they face similar regulatory hurdles in other cities like Barcelona. This, combined with a 15% drop in Q2 profits, signals broader issues for the company.

Millennials want more space in the rental market link

• Millennials are increasingly prioritizing larger living spaces, especially as more of them work from home. The demand for bigger rental units is shifting the market towards larger apartments and single-family rentals.

• This generational shift is contributing to rising rental costs in suburban areas, as millennials seek more space without moving too far from urban centers. Cities like Denver and Austin are particularly affected by this trend.

• Multifamily developers are responding by designing units with more square footage, including dedicated home office spaces. This adaptation reflects the long-term changes in living preferences due to the rise of remote work.

LA medical office vacancy rate returns to pre-pandemic levels link

• Medical office vacancy rates in Los Angeles have returned to 2019 levels, signaling strong recovery in the sector. The vacancy rate dropped to 8.4%, compared to a 10.1% high during the pandemic.

• Demand for medical office space is being driven by healthcare expansions and an aging population. This is especially seen in suburban areas like West Covina and Santa Monica.

• New developments and renovations are limited, which is helping to keep vacancy rates low. Tenants are also locking into long-term leases to secure their locations.

Industrial absorption set to grow on rate drop expectations link

• Industrial real estate demand is expected to increase as interest rate drops become more likely by year-end. This could lead to more favorable conditions for industrial property investments across various markets.

• Vacancy rates in key markets remain low, indicating continued strong demand despite broader economic uncertainties. Key cities like Dallas and Chicago are seeing particularly high levels of absorption.

• Developers are cautious but optimistic, expecting demand to pick up significantly with a rate decrease. Construction activity is ongoing, especially in Southern California and Texas, where logistics hubs are growing rapidly.

Apartment supply about to set new record in Long Island, NY Link

• Long Island, particularly Nassau and Suffolk Counties, will see nearly 2,100 new apartment units in the 3rd quarter of 2024, a record high. This increases the apartment inventory by 2.6%, adding to the 82,200 existing units.

• Since 2014, Long Island's apartment inventory has grown by about 12%, but annual growth has typically averaged only 1.1%. The current surge in construction is the highest since RealPage data tracking began in 2002.

• High construction volumes will continue into mid-2025, though delays may affect timelines. Supply is expected to normalize by late 2025, returning to historical levels.

6 of every 7 people with mortgages have an interest rate below 6%, but the lock-in effect is starting to ease link

• Over 85% of U.S. homeowners with mortgages have interest rates below 6%, but this figure has dropped from 92.8% in mid-2022. As life events prompt moves, more homeowners are accepting higher rates to sell.

• Those with sub-5% mortgages are also declining, now at 76.1%, down from a peak of 85.6% in 2022. Many are holding off selling unless rates drop to at least 5%.

• Major life changes like job moves or divorce are pushing some to sell despite higher rates. However, mortgage-free Americans are increasing as homeowners pay off their homes.

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Designed by THE one and only: Frank Lloyd Wright. Wait till you go inside.

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Vidit

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