90% of seniors want to stay at home

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Data from this week ending Dec. 7, 2024 link

• The national median listing price declined by 1.2% year-over-year, marking the 28th consecutive week of flat or falling prices. However, median price per square foot rose 1.5%, reflecting a shift towards smaller homes on the market.

• New listings rose 16.5% post-Thanksgiving and adjusted to a 2.6% increase year-over-year after accounting for holiday timing. This uptick aligns with mortgage rates falling below 6.7%, encouraging marginal sellers to list homes.

• Active inventory increased by 23.5% compared to the previous year but grew at the slowest pace since March 2024. Homes spent an additional eight days on the market as buyers take their time, navigating abundant inventory and high mortgage rates.

A whopping 90% of seniors prefer to stay at home link

• Almost 90% of seniors prefer to stay in their own homes as they age, with 45% rejecting the idea of moving into nursing homes. However, 47% feel their homes are ill-equipped for aging needs, and 36% cannot afford renovations.

• Accessibility to healthcare (59%) and affordable housing costs (54%) are the top factors influencing where seniors choose to age in place. Cities like Rochester, NY, excel with average monthly homeownership costs of $1,205 and strong healthcare support.

• Expensive cities like San Francisco, Oakland, and Los Angeles are among the worst for aging in place, due to high costs and lower accessibility metrics. By contrast, cities like Cleveland and Pittsburgh rank high due to affordability and senior services.

More older adults in 2024 desire active adult living options link

• Interest in active adult communities among those over 50 has risen, with 32% expressing some likelihood of moving into such housing in 2024, up from 26% in 2021. Nearly half of younger adults also view these communities as appealing, showing intergenerational interest.

• Affordability drives housing decisions, with 71% prioritizing rent or mortgage costs and 60% seeking lower maintenance responsibilities. Property taxes were a key factor for 55% of respondents planning to move.

• Aging-in-place needs include bathroom upgrades (73%), better home accessibility (71%), and main-floor facilities (30%). Emergency response systems and smart home tech were sought by 64% and 44%, respectively.

Overseas investors not worried overly about interest rates  link

• Tax and deregulation (25%), geopolitics (23%), and trade (20%) were the top concerns for international real estate investors in 2024. Interest rates were considered a minor factor at only 7%, while housing and immigration each garnered just 5%.

• A majority of respondents (63%) identified housing affordability and availability as the top U.S. CRE challenge over the next five years. Most supported municipal solutions like zoning reform and streamlined housing policies to address the crisis.

• 80% of industry experts disagreed with the current pricing of climate risks in insurance, up from 71% earlier in the year. Concerns centered on the gap between risk awareness and appropriate financial measures in real estate markets.

Cincinnati’s housing market is fluctuating link

• Cincinnati’s housing market is fluctuating, with higher inventory and lower prices providing buyers with more leverage. Inventory increased from 1,864 in May to 3,019, while the median sale price dropped from $400,000 in June to $350,000.

• The area benefits from lower living costs and corporate relocations, with companies like GE, P&G, and Amazon boosting economic activity. These factors are attracting transplants and stimulating home construction despite market unpredictability.

• Sellers are making unprecedented concessions, including major upgrades like septic tanks and roofs, to close deals. Agents note this reflects a transition away from a strong seller's market, with Altos Research's Market Action Index falling from 55 in May to 45.

NYC sees 48% uptick in MOB sales link

• Medical office building (MOB) sales in NYC rose by 48% in 2024, driven by increased leasing, higher rents, and declining vacancy rates. The Upper East Side and Brooklyn are leading hotspots, with nearly 1 million square feet of new construction underway.

• Manhattan hospitals are expanding outpatient services outside main campuses, supported by technologies that reduce the need for in-patient care. The aging Tri-State population is a key driver of this demand, particularly residents over 75.

• NYC's growth is part of a national trend, with Boston projected to lead the nation in MOB absorption in 2025 at 808,000 sq. ft. Other active markets include Washington, DC, Philadelphia, and Indianapolis, all seeing substantial development activity.

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Vidit

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