Charted: Net Migration Between States

And we are back!! Happy 2025 to you . Hope it is the best one yet 🎉🙌

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Housing inventory is down everywhere except in pandemic hotspots. Here’s why link

• Housing inventory has decreased significantly in many states, with Connecticut down 73.4%, New Jersey 64.1%, Maryland 56.1%, and Massachusetts 54% compared to 2019. Homeowners with mortgage rates locked at 3%-4% are hesitant to sell, limiting inventory nationwide.

• Pandemic hotspots like Oklahoma (+33.6%), Texas (+24.8%), Florida (+15.1%), Colorado (+11.8%), Idaho (+16%), and Arizona (+11.3%) have seen inventory levels rise since 2019. These markets previously experienced surges in migration from California and New York.

• Migration from California and New York to states like Arizona (-26.8%), Colorado (-21.3%), Idaho (-35.5%), and Utah (-15.1%) has dropped sharply since 2022. Florida also saw a decrease in incoming New Yorkers from over 90,000 in 2021–2022 to around 71,000 in 2023.

The next big things in hospitality: trends for 2025

• Hyper-personalized guest experiences will leverage AI and advanced data analytics to anticipate needs, adjusting room settings like lighting and temperature based on mood. Voice recognition, IoT, and wearables will enhance seamless and intuitive stays.

• Sustainability will integrate into luxury hospitality with green certifications, biophilic designs, and farm-to-table dining. Vertical gardens, solar energy, and reduced food waste will become standard practices.

• Wellness tourism will expand to include mental health-focused packages, AI-powered sleep technology, and holistic well-being experiences. Natural destinations with clean air and serene surroundings will attract wellness seekers.

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New trend: Big Data Centers Are Going Nuclear link

• Global data centers consumed 7.4 gigawatts of power in 2023, a 55% increase from 2022, and AI electricity demand could exceed 1,000 terawatts globally by 2026. This rapid growth is straining electrical grids and driving interest in nuclear energy as a stable power source.

• Microsoft signed a 20-year deal with Constellation Energy for nuclear power from Pennsylvania's Three Mile Island reactor, while Amazon is working with Energy Northwest to build advanced small modular reactors (SMRs) providing up to 960 megawatts by the early 2030s.

• SMR technology, like NuScale’s VOYGR™ reactors, promises quicker deployment and modular scalability, with projects already underway in Ohio and Pennsylvania. Tech giants including Oracle, Google, and Amazon are actively investing in these next-generation nuclear solutions.

More starter homes are hitting the market link

• Inventory of homes for sale increased by 26.2% in November compared to the same time last year, marking 13 consecutive months of growth. This is the highest level of available homes since December 2019.

• Starter homes have seen the largest growth in inventory, offering more options for first-time buyers at lower price points. This shift could make homeownership more accessible for many.

• Real estate agents play a key role in navigating this market by identifying suitable starter homes, negotiating effectively, and managing documentation and deadlines. Their expertise helps reduce stress and streamline the buying process.

Top 10 counties with the largest quarterly increase in affordability indexes in Q4 2024

• Median-priced single-family homes and condos remain unaffordable in 99% of counties analyzed, consuming 34% of the average national wage. This figure surpasses the traditional lending guideline of 28%.

• Homeownership costs, including mortgage payments, taxes, and insurance, have increased by nearly 13 percentage points since early 2021. Mortgage rates remain above 6%, with a national median home price of $364,750.

• Counties showing the largest affordability index improvements include Mercer County, PA, Peoria County, IL, and Niagara County, NY. Despite gains, affordability remains below historical averages in most regions.

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Our Zestimate obsession link

(Zillow's price estimates are screwing up homebuying — but Americans love them)

• The Zestimate launched in 2006 with a bold promise of providing free home valuations, but its accuracy remains contentious. Zillow’s own data shows a median error rate of 2.4% for on-market homes and 7.49% for off-market homes.

• The Zestimate is heavily influenced by the list price, making it more accurate for listed homes. In Austin, for example, 94% of on-market homes sell within 10% of the Zestimate, but only 66% of off-market Zestimates meet this threshold.

• Zillow's use of its algorithm for homebuying resulted in massive losses, including $422 million in a single quarter during 2021. Despite its flaws, the Zestimate endures as a cultural phenomenon and marketing powerhouse, attracting millions of users.

Mapped: Net Migration Between States in 2023

(The chart is for 2023 because of the lag in data availability)

The 8 travel and hospitality trends that defined 2024 

Survey highlights bullish outlook for affordable housing investment 

These factors will shape housing markets in 2025

U.S. hotel assets: a high-yield opportunity

Zillow’s most popular markets of 2024

List of Proptech Startups That Just Got Funded

Mapped: The Cost of Raising a Child, by U.S. State

How much do you like Rock Climbing?

Link to the listing

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Cheers,

Vidit

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