Evictions have surged 👀

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Homeownership Rate Remains at 65.6% link

• The homeownership rate remained steady at 65.6% in Q2 2024, consistent with the previous quarter and year. High home prices and elevated mortgage rates have kept the market stable yet unchanged.

• Homeowner vacancy rates edged up to 0.9%, with the South experiencing the highest rate at 1.2%. Inventory improvements are still below pre-pandemic levels, putting pressure on prices.

• Rental vacancy rates stayed at 6.6%, with the South having the highest rate at 8.4%. Increased multifamily completions and high homebuying costs have pushed more people into renting, keeping rental vacancy above pre-pandemic levels.

Alternative Sectors Take a Hit in Q2 link

• Investment volume across alternative property types in Q2 was $8.6 billion, down 12% year over year. Compared to the average second quarter between 2015 and 2019, sales activity fell by 34%.

• Despite the downturn, MSCI indicates that volume and pricing may have reached their lowest point in Q2 2024. This suggests potential stabilization or recovery in the near future.

• Offices, particularly Class B and C, continue to struggle, with only the top 10-15% of Class A performing well. This highlights a stark contrast within the office sector's performance.

Evictions have surged link

• Evictions have surged after the end of pandemic-related aids and moratoriums. Data from Eviction Lab shows about 1.08 million evictions in the past year and 77,840 last month.

• The eviction rates vary significantly across different cities and states, reflecting diverse local economic conditions and housing policies. Some regions report evictions returning to pre-pandemic levels, while others exceed them.

• This trend highlights the ongoing housing instability and financial challenges faced by tenants as economic supports wane. It underscores the critical need for policy interventions to address housing affordability and tenant protections.

Retail Resurgence Headlining Current CRE State link

• The shift to remote and hybrid work schedules has led to more time spent shopping, reversing the trend of declining foot traffic in brick-and-mortar stores. Despite numerous store closures over the years, consumer demand now exceeds supply.

• Scarcity in new retail construction is pushing up property values and rental rates in existing retail spaces. This shift benefits property owners but poses challenges for new retailers seeking space.

• Alex Zikakis, CEO of Capstone Advisors, notes that the current market dynamics favor well-located retail properties, which are seeing increased investment and interest. This resurgence highlights the sector's adaptability and resilience.

Omaha Apartment Occupancy Solid link

• Omaha's apartment market maintains a strong occupancy rate, hovering around 96%. This stability is notable despite broader economic fluctuations and demonstrates consistent demand.

• Rental growth in Omaha has been moderate, with average rents increasing by 2.5% over the past year. This growth is slower compared to national averages, reflecting a more stable and affordable market.

• New apartment constructions in Omaha are pacing well with demand, avoiding oversupply issues. This balanced development ensures continued market health and prevents rental rate spikes.

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That's all, folks.

Cheers,

Vidit

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