This chart shows houses are still selling fast

Mortgage rates rising again link

• Mortgage rates have surged over 7%, with the 10-year bond yield jumping back over 4%. This increase is 40 basis points higher than a month ago and 100 basis points higher than a year ago, potentially impacting buyer momentum.

• Inventory levels are falling each week, a common trend for February, but inventory is 8.8% higher than last year. There are currently 497,000 single family homes unsold across the US, indicating a slight increase in sellers compared to the previous year.

• Home prices continue to rise despite high mortgage rates, with the median price of single family homes in the US just under $425,000. Prices are a few percent higher than last year at this time, suggesting strong buyer demand and a market that could hit new all-time highs by May.

Migration Plays a Role in Restoring U.S. Population to Pre-Pandemic Levels link

• In 2023, the U.S. population increased by 1.6 million, marking the largest gains since 2018 due to decreased deaths and increased migration. This shift is moving population trends back to pre-pandemic levels.

• Over 1.1 million foreign nationals moved to the U.S. between July 2022 and July 2023, with Florida, California, Texas, and New York being the top states for international movers. Despite this, New York and California saw significant losses in domestic migration.

• Domestic migration patterns show a clear preference for affordability, with states like Florida and Texas seeing the largest gains. The South region gained over 1.1 million residents through net migration, while the West and Northeast experienced net losses, highlighting a shift towards more affordable living areas.

U.S. Job Growth Nearly Doubled Expectations in January link

• The U.S. job market outperformed expectations in January 2024, with a significant surge in job growth and unemployment remaining low. Employers added approximately 353,000 workers, marking the largest one-month gain in a year and nearly double the rate economists forecasted.

• Job gains were widespread across major industries, with notable expansions in Education and Health Services, Professional and Business Services, and Trade, Transportation, and Utilities. This broad-based growth indicates a resilient and expanding job market, despite high interest rates.

• The unemployment rate held steady at 3.7% for the third consecutive month, maintaining a level below 4% for two years—the first occurrence since the late 1960s. Average hourly earnings rose by $0.19 from December to January, highlighting ongoing wage growth that surpasses rising prices.

Multifamily Occupancy Takes a Hit in Several Markets link

• Multifamily occupancy rates are declining across several major markets. Despite an average increase of 0.3% in multifamily occupancy, 26 of the top 50 metropolitan statistical areas (MSAs) reported declines.

• Significant occupancy drops were noted in properties across Raleigh, Atlanta, and Jacksonville. For example, Raleigh's The Proper Raleigh Apartments saw occupancy plummet from 60.2% in December 2022 to 44.8% in September 2023.

• Renovations and increased expenses are impacting occupancy and financial stability. The Whitney Manor Apartments in New Orleans, despite financial challenges, increased its occupancy from 62% in December 2021 to 90% in September 2023, highlighting diverse market responses.

The most, least affordable cities for single renters link

• New York City tops the list as the least affordable city for single renters, with a staggering 71.13% of median income needed for a studio apartment. Wichita, Kansas, emerges as the most affordable, demanding only 17.65% of median income for similar accommodation.

• Gender significantly impacts rental affordability; in major cities, single women spend a median of 79.42% of their income on rent, compared to 60.99% for men. This discrepancy highlights a broader issue of the gender pay gap affecting housing affordability.