Data Center Rents are Soaring, Home Sales Are Finally Climbing

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"When you finally learn that a person’s behavior has more to do with their own internal struggle than you, you learn grace."

~Allison Aars

Data Center Asking Rents are Soaring link

• Demand for data center space in North America is outstripping supply, pushing rents close to peak levels last seen in 2010-2011. Occupiers now pre-lease space 18 to 36 months in advance, a significant increase from the previous norm of six to 12 months.

• The trend reflects a growing need for data centers, driven by the digital transformation of businesses and the expansion of cloud computing. This has led to longer lead times for securing space, indicating a robust and expanding market.

• As a result, companies seeking data center space must plan far ahead to secure their required infrastructure. This shift towards earlier pre-leasing demonstrates the competitive nature of the market and underscores the strategic importance of data centers in today's economy.

More Than Three-Quarters of Baby Boomers Plan to Stay In Their Home As They Grow Older link

• Over three-quarters of older American homeowners prefer staying in their current homes, a trend that exacerbates the shortage of homes for sale. This preference is partly due to financial incentives, such as low mortgage rates obtained during the pandemic.

• Baby boomers, who own 28% of U.S. homes with three or more bedrooms, significantly impact the availability of family homes. Nearly 80% of boomers own their homes, compared to 55% of millennials, intensifying the housing market's challenges.

• Many boomers have no mortgage or a significantly lower interest rate than current rates, making it financially sensible to stay put. Additionally, over half of the boomers like their current home too much to consider moving.

Home Sales Are Finally Climbing link

• After 18 months of dry home sales, there's finally a surge as sellers return to the market. New listing volume this week is 18% more than a year ago, with total available inventory gradually climbing about 1% per week.

• Pending sales show a healthy increase, with 69,000 new contracts for single-family home purchases across the country this week, marking a 13% growth over the same week last year. There are now 7% more home sales in the contract pending stage than a year ago, indicating a durable sales growth trend.

• Despite the common belief that mortgage rates must fall for home sales to rebound, current data suggests that stability in mortgage markets is all that's needed for rising home sales in 2024. This stability has led to an increase in sales, even as mortgage rates have risen.

Property Taxes on Single-Family Homes Up 7 Percent in 2023 link

• In 2023, property taxes levied on single-family homes in the U.S. surged by 6.9% to $363.3 billion, marking the most significant increase in the past five years. The growth rate was almost double that of 2022, showcasing an accelerated upward trend in property taxation.

• The average property tax for single-family homes nationwide increased to $4,062, up by 4.1% from the previous year, against a backdrop of declining home values. This rise in taxes, coupled with a 1.7% drop in average home values, resulted in the first effective tax rate increase since 2017.

• Northeastern and Midwestern states experienced the highest effective property tax rates, led by Illinois, New Jersey, and Connecticut. In contrast, the lowest rates were found in the South and West, with Hawaii, Arizona, and Alabama leading the pack, illustrating significant regional disparities in property tax burdens.

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Top Emerging Global Markets for Investment in 2024

Chart: The Rising Prevalence of Autism link

• The prevalence of autism among U.S. children has increased from 6.7 in 1,000 in 2000 to 27.6 in 1,000 by 2020. This shift means that currently, 1 in 36 children in the U.S. are diagnosed with ASD, a significant rise from 1 in 150 children two decades ago.

• The reasons behind the increasing prevalence of autism are not fully understood but may include better awareness and screening, changes in diagnostic criteria, and possible environmental or genetic factors. This complexity underscores the importance of early identification and intervention for those with ASD.

The Carolinas Have Become a Major Multifamily Market 

Zumper National Rent Report 

Study: Most Wanted Features By Homebuyers 

U.S. Banks Face $2 Trillion CRE Loan Maturity Wall

That's all, folks.

Cheers,

Vidit

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