Americans moving to low-tax states

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The typical home is taking nearly 2 months to sell - slowest pace in 5 years link

• Homes are sitting on the market for a median of 54 days before going under contract, the longest span since March 2020. This is a full week longer than the same time last year and nearly 20 days longer than during the pandemic boom in 2022.

• There are 5.2 months of supply available, the highest since February 2019, signaling a buyer’s market. Pending home sales are down 9.4% year over year, marking the biggest decline since September 2023.

• High mortgage rates near 7% and rising home prices, up 4.8% year over year, are making it expensive to buy. The median monthly housing payment is $2,753, just shy of April’s record high, while extreme weather in the Midwest, South, and Northeast is also keeping buyers at home.

Americans continue to move to low-tax states in ’24 link

• Americans are leaving high-tax, high-cost states for lower-tax, lower-cost alternatives. In 2024, 18 out of 26 states with below-average tax burdens saw net inbound migration.

• The Tax Foundation analyzed data from the U.S. Census Bureau, U-Haul, and United Van Lines to track interstate migration trends. This continues a long-term pattern of movement away from expensive states.

• States with high state and local tax burdens are seeing population declines, reinforcing the trend of people prioritizing affordability. Migration patterns suggest that economic policies strongly influence where people choose to live.

Apartment occupancy returns to historically normal levels at end of 2024 link

• The U.S. apartment market saw record supply in 2024, dropping occupancy to 94.1% early in the year. Demand rebounded, pushing occupancy back up to 94.8% by year-end, aligning with long-term averages.

• Class B apartments led the recovery, overtaking Class C as the most occupied asset class. By the end of 2024, Class B had 95% occupancy, ahead of Class C (94.8%) and Class A (94.5%).

• Despite improvements, all asset classes remained below pre-pandemic occupancy levels. Class B saw the strongest growth, with an 80 bps increase in 2024, while Class A and C each gained 50 bps.

Millennials, Gen Z most likely to relocate to different states

• Gen Z individuals are moving to the Carolinas and Arizona, drawn by dynamic job markets and a laid-back lifestyle. These states offer appealing environments for young professionals seeking new opportunities.

• Millennials prefer more affordable states like Texas and Florida for relocation. Lower living costs in these areas make them attractive destinations for this age group.

• Overall, nearly 88% of Americans remained in the same home year-over-year, up from 85.1% a decade ago. This indicates a general decline in mobility across the population.

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Home listings in this southwest state will look different—and other states could soon follow their lead link

• New Mexico's MLS now requires floor plans in home listings to improve buyer transparency. A 2024 National Association of Realtors report found floor plans are the third most important listing feature after photos and property details.

• The change is possible due to Light Detection and Ranging (LiDAR) technology in phones, allowing agents to create floor plans for free. Previously, legal issues and lack of access to digital tools limited their use in U.S. listings.

• A 2021 lawsuit attempted to block floor plans from listings, but the U.S. Court of Appeals ruled in January that their use is protected under fair use law. Other states may follow New Mexico's lead, aligning with global standards in Sweden, Australia, and the U.K.

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Guess what the inside is like?!

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Vidit

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