Climate change risking $1.47 trillion in values

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U.S. Begins 2025 With a Slowdown in Hiring link

• Employers added 143,000 jobs in January, missing the 170,000 forecast and falling sharply from December’s 307,000 jobs. This marks a clear hiring slowdown despite 49 straight months of job growth.

• The biggest job gains came from Education/Health Services (+61,000), Trade/Transportation/Utilities (+38,000), and Government (+32,000). Meanwhile, Professional/Business Services (-11,000), Mining/Logging (-7,000), and Leisure/Hospitality (-3,000) saw losses.

• The unemployment rate dropped to 4%, the lowest in eight months, after declining for two consecutive months. Employers added 2 million jobs over the past year, averaging 168,000 per month.

Weekly housing trends view—data for week ending Feb. 8, 2025 link

• The median list price dropped 1.2% year over year, marking the 37th straight week of either flat or declining prices. A 38% increase in price reductions compared to last year suggests sellers are lowering prices to attract buyers.

• New listings surged 11.3% from a year ago, continuing a five-week streak of increased seller activity. Many homeowners who delayed selling due to high mortgage rates are now listing as life circumstances push them to move.

• Active inventory rose 27.5% year over year, extending a 66-week streak of more homes on the market. Homes are sitting 4 days longer compared to last year, giving buyers more time to make decisions.

The Top 10 Metros With the Largest Home Price Increases

• Jackson, MS, saw the biggest jump in home prices, with a 28.7% increase year over year, bringing the median price to $251,600. Peoria, IL, followed with a 19.6% gain, reaching $172,500.

• The Midwest dominated the list, with five cities among the top 10, while the South and Northeast had strong representation. Demand has remained high in these regions as buyers seek more affordable alternatives.

• Nationally, home prices climbed 4.8%, hitting a median of $410,000, with the South logging 45.1% of all sales. Meanwhile, San Jose, CA, led high-cost markets with a 10% increase, pushing its median price to $1.9 million.

• click on the link to see the rest of the list

U.S. Life Sciences Outlook 2025

• Lab/R&D leasing surged by 41% year-over-year in Q3 2024, signaling a rebound in demand despite oversupply concerns. The market is expected to continue improving in 2025, driven by economic growth and more available capital.

• Venture capital funding rose 10% in Q3 2024 compared to 2023 and surpassed its pre-pandemic peak from 2019. This could lead to increased IPO activity and further investment in the sector.

• Despite over 16.6 million sq. ft. of lab space under construction, vacancy rates are expected to climb before stabilizing. However, the construction pipeline is set to slow significantly by the end of 2025.

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Is 2025 the Year to Invest in Seniors Housing?

• The seniors housing M&A market had a record-breaking year in 2024 with over 700 publicly announced transactions, surpassing the previous high of 560 in 2022. Strong availability of capital allowed REITs to finance non-performing and unstabilized assets effectively.

• Occupancy in the sector has improved for the fourteenth consecutive quarter, reaching 87.2% according to NIC Map Vision. With construction slowing, expected occupancy and NOI growth remain favorable for investors.

• Liquidity in the M&A market is improving, with more equity and debt providers expected to increase capital allocations in 2025. Private equity could make a resurgence as financing costs decrease, making yields in seniors housing more attractive than other real estate sectors.

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Surprising rent growth emerges in select multifamily markets link

• Boston’s Class A rents are projected to hit $4,150 per month in 2025, a 3.5% increase from last year. This outpaces the national rent growth average of 2.8%.

• Northern Virginia continues to show stable multifamily growth, attracting long-term investment from Shoreham Capital. The firm has consistently backed this market due to its steady demand and controlled supply.

• Sun Belt cities like Austin, Nashville, Raleigh, and Tampa Bay are struggling with an oversupply of apartments. Developers believe these markets will stabilize within 12 to 18 months as supply gets absorbed.

Climate change could erase $1.47 trillion in property values by 2055, study says link

• Climate risks are expected to wipe out $1.47 trillion in U.S. home values and displace over 55 million people by 2055. Insurance costs will surge by 29.4%, forcing homeowners to migrate to safer areas.

• The Sun Belt, long a magnet for homebuyers, will see a major reversal as hurricanes, wildfires, and flooding drive up insurance costs. Miami faces a 322% increase in premiums, with Tampa, Jacksonville, and Sacramento also seeing sharp spikes.

• Despite rising climate risks, cities like Houston continue to grow due to strong economies and housing demand. Home values in Harris County jumped 58% from 2017 to 2022, outpacing national trends.

Emerging Trends in Real Estate 2025: Full Report Breakdown

Following is my actionable breakdown of this year’s 168-page long Emerging Trends in Real Estate report—produced by PwC and the Urban Land Institute with insights from industry experts—dives into the shifting dynamics across all asset classes.

I’d love to know if you liked the breakdown, and I’ll do more in the future. Just reply to this email 🙏

Ranked: The 15 Largest Countries in the World by Land Area

I expected to hate this.

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Vidit

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