Foreclosure rate by state, Steep Maturity Wall for CRE

In partnership with

New here? Join the newsletter (it's free).

Vacancy climbing above pre-pandemic level link

• Renters now have more choices, leading to longer vacancies, with stabilized units sitting vacant nearly five days longer than before 2020. Despite record demand, it's taking significantly longer to lease available apartments.

• At the end of 2024, the nationwide average vacant days reached 34.4, up from 30 in early 2020. The increase results in an additional $275 per unit in expenses and turnover costs based on the average U.S. rent of $1,818.

• More than half a million stabilized units remain unoccupied, amplifying financial strain on property operations. Extended vacancy times are cutting into rental income even as new supply floods the market.

New Hospitality Trends and Takeaways link

• Debt and equity markets are adjusting to the reality of sustained high interest rates, with capital available for deals where cap rates are at least 7-8%. Transaction volume is expected to remain slow, with only slight yield compression as interest rate volatility stabilizes.

• Rising operational costs, including renovation and insurance expenses, are squeezing margins across the industry. Immigration policy changes and deregulation could provide some relief, while potential tariffs and shifting international travel perceptions may pose risks.

• The demand for unique, experience-driven hospitality continues to grow, with consumers willing to pay a premium for nostalgia and adventure. Distressed markets like San Francisco, Portland, and downtown Los Angeles will remain troubled, while extended-stay hotels are the favored asset class for investors.

Multifamily trends with tenant-driven data link

• Traditional gateway markets like Washington D.C. are stabilizing after post-pandemic population losses, while southern cities like Charlotte, Raleigh, and West Palm Beach are seeing rising demand. West Palm Beach has gained traction due to more affordable pricing compared to other parts of Florida.

• The demand for larger rental units is outpacing smaller units as remote work continues, making it harder for landlords to lease studios and one-bedrooms. Renters want more space to accommodate new live-work behaviors.

• Multifamily investors are showing cautious optimism, with increased deal activity but slower transaction velocity. Palm Beach County has led the nation in attracting wealth, gaining $39 billion in income and value post-pandemic.

Foreclosure rate by state – January 2025 link

• Foreclosure activity increased by 8% from December but remains 7% lower than last year. The uptick may be due to a post-holiday backlog rather than a significant market shift.

• Delaware had the highest foreclosure rate, with one in every 1,839 housing units affected. Other high-ranking states included Nevada, Indiana, Illinois, and Utah, showing regional foreclosure disparities.

• California recorded the highest number of foreclosures, with 4,051 filings in January. Florida, Texas, and Illinois also saw high foreclosure volumes, reflecting broader economic conditions and lending trends.

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

Aging Boomers Are About To Rekindle the Senior-Housing Market link

• The U.S. population of people 80 and older is expected to grow by over 4 million by 2030, reaching 18.8 million. Many will struggle to find housing as development of senior living nearly halted during the pandemic and has not recovered.

• The senior housing industry is projected to face a severe shortage, needing over 560,000 new units by 2030 but only on track to add 191,000. High interest rates and rising construction costs have pushed major developers to focus on acquisitions instead of new builds.

• Wealthy seniors are the primary target for new developments, with luxury projects featuring high-end amenities like private wine rooms, spas, and golf cart paths. Meanwhile, about half of seniors can't afford private senior housing, where rents average $4,100 for independent living and $6,400 for assisted living.

Homebuyers say they are willing to accept longer mortgage terms link

• 73% of surveyed buyers are open to longer mortgage terms to reduce monthly payments. High home prices and interest rates are pushing them to extend loan durations.

• 80% of respondents are willing to buy homes needing major renovations to make homeownership more affordable. Younger buyers are leading this trend as they struggle to find budget-friendly homes.

• 64% of buyers think purchasing a home will be even harder in 2025, while 31% believe there will be little to no impact. Home sales have already slowed, with only 54,000 unsold listings remaining in February.

Steep Maturity Wall for CRE for the Next Three Years

The 2 cities where it’s cheaper to buy than rent—but only if you act soon 

Net lease deals skyrocket in these high-growth cities

Top 10 metros with the highest zombie foreclosure rates in Q1 2025

These markets in top U.S. ski spots still going uphill

U.S. Office Market Detailed Report

List of Proptech Startups That Just Got Funded

Charted: How U.S. Food Prices Have Surged Since 2021

A Zombie Apocalypse House

Link to the listing

That's all, folks. If these emails aren't for you anymore, you can unsubscribe here.

Cheers,

Vidit

Instagram

P.S - Read past newsletters here