Buying homes with friends trend

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Car Insurance Costs Have Increased Significantly

Chicago Challenges Miami for Hottest Rental Market Status link

• Suburban Chicago has tied Miami as the hottest rental market with a Rental Competitiveness Index (RCI) score of 91.3, driven by Chicagoland's economic growth and appeal to renters. Apartments in suburban Chicago stay vacant for just 33 days, with 16 applicants vying for each available unit.

• The Midwest’s rising popularity is reflected in high lease renewal rates, with 69.5% of tenants renewing their leases, up from 67.3% last year. This surge has driven occupancy rates to 95.6%, making it one of the toughest markets for renters.

  

• The national RCI score sits at 75.8, but the Midwest has become highly competitive, matching the Northeast's RCI of 80. In contrast, Florida's appeal is waning as more renters seek affordability in the Midwest.

High-End SFR see steeper rents as low-end prices drop

• Single-family rent growth was 2.8% year-over-year in July 2024, lower than pre-pandemic levels, which averaged 3.4%. High-end properties saw steeper rent increases at 2.9%, while low-end rents declined by 0.2%.

  

• Eight major metro areas posted rent increases above 4%, with Washington, D.C. leading at 6.3%. Chicago, Seattle, and Boston also saw significant rent growth above 5%.

• Austin and Phoenix experienced rent declines, dropping by 1.1% and 0.8%, respectively. Median rents exceeded $3,000 in seven metro areas, showing strong demand in higher-end markets.

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CRE industry conditions and sentiment survey link

• More than 80% of CRE professionals think hospitality is fairly priced, while over 70% say the same about retail. Single-family residential, land/development, and office sectors were seen as overpriced.

• Capital deployment is becoming a top priority for 31% of respondents, up from 20% in Q2, while fewer are focused on portfolio de-risking. Meanwhile, 43% now believe a recession is somewhat likely in the next six months.

• Cost of capital remains a critical concern, with 60% of respondents flagging it as a key issue for the fourth consecutive quarter. Capital availability also grew as a concern, with 47% now citing it, a 6% increase.

Office-Using Employment Rises in Q2 link

• Office-using employment increased by 6.1% in Q2 2024, surpassing pre-pandemic levels and marking the highest point since 2000. However, unemployment concerns could dampen future office demand.

• The average lease term for renewing tenants hit 94.1 months, driven by law firms and government tenants. New lease terms average 122 months, close to pre-pandemic lengths.

• Prime Class A effective rents rose 43.4% from their post-COVID low, with triple-digit deals now making up 5.2% of all deals. Despite rising rents, office vacancy rates have increased for 18 straight quarters, with CBD offices showing faster vacancy growth than suburban markets.

The buying homes with friends trend is fading fast link

• The number of co-buyers with different last names surged to 1.3 million in 2021 but has since dropped by nearly 30%. This reflects growing caution about shared homeownership due to financial and interpersonal challenges.

• A Zillow survey showed that the percentage of Millennials purchasing homes with friends fell sharply, from 14% in 2023 to just 7% in 2024. This suggests a decline in co-ownership due to rising interest rates and concerns over complicated break clauses.

  
  

• Lower mortgage rates, driven by recent Federal Reserve cuts, are making homeownership more accessible. Many co-buyers may now seek to exit shared ownership, likely leading to strained relationships and awkward conversations among former co-owners.

New York City rents are still rising: here’s how much you need to earn to snag an apartment in each borough link

• In August 2024, the median asking rent across Manhattan, Queens, the Bronx, and Brooklyn was $3,425, a 2.3% increase from last year. This price is nearly double the national median rent of $1,753, showing that NYC remains one of the few cities where rents are still rising.

• Manhattan’s median rent decreased by 2.2% year over year, but renters would still need an income of $178,880 to afford typical rents without exceeding 30% of their income. In contrast, the Bronx remains the most affordable borough, with a median rent of $3,163, though prices have surged by 56% since 2019.

• Queens experienced a substantial 11.1% rent increase over the past year, with the median asking rent at $3,427. To comfortably afford this, a household would need an annual income of $137,080.

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Vidit

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