Housing market gained $2.5 trillion in value

In partnership with

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

U.S. housing market gained $2.5 trillion in value in 2024 link

• The total value of U.S. homes rose to $49.7 trillion in 2024, increasing by 5.2% year over year. This was the slowest annual growth since 2019 and the second-slowest since 2011.

• Albany and Rochester in upstate New York saw the highest home value increases, rising 11.3% and 11.2%, respectively. Meanwhile, Cape Coral, FL, saw the biggest decline, dropping 2.9%.

• Millennials now own more than 20% of the U.S. housing market, with their home value rising 18.8% to $9.7 trillion. This growth is nearly four times faster than that of baby boomers.

Where office-to-resi conversions are growing most—and why 

• The office-to-residential conversion pipeline grew 28% since early 2024, with Boston, Jacksonville, Omaha, and Charlotte leading the surge. Boston saw the largest increase at 160%, followed by Jacksonville (150%), Omaha (141%), and Charlotte (107%).

• NYC, D.C., and L.A. have the most potential, with Manhattan alone having over 100 million square feet of office space viable for conversion. Washington, D.C., has 172 properties with high conversion feasibility, while L.A. leads with 267 buildings totaling nearly 25 million square feet.

• Developers are securing major financing, such as the $135 million loan for converting the former Pfizer headquarters in NYC into 1,600 units. Tax incentives are fueling projects, including a 90% tax abatement in Manhattan and a 20-year tax break in Washington, D.C.

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

U.S. housing market could lose nearly $1.5 trillion in value due to rising costs of climate change link

• By 2055, 84% of U.S. homes could see a decline in value, leading to an estimated $1.47 trillion in losses. Some counties in Texas, Florida, and Louisiana may see property values drop by 50%.

• Insurance costs are expected to rise by an average of 25% over the next 30 years, with 14% due to previously underpriced risk and 11% due to increasing climate threats. Higher insurance costs will make homeownership more expensive, pushing values down further.

• At least 20% of U.S. homes could be devalued in the next five years due to climate risks. Some markets may see home prices fall by 30%, mirroring the housing crash from 2007 to 2012.

Tariff fears and mortgage rates hurt builder sentiment as single-family home construction slows link

• Single-family housing starts dropped 8.4% in January to an annualized rate of 993,000, marking a 1.8% decline from a year earlier. Total housing starts, including multifamily, fell 9.8% from December.

• Builder sentiment hit a five-month low in February as mortgage rates hovered near 7% and Trump’s new tariff policies threatened material costs. The NAHB/Wells Fargo Housing Market Index erased gains made after the November election.

• Despite slow starts, single-family home completions rose 7.1% in January as builders pushed to finish projects before the spring market. Permits remained flat at an annualized rate of 996,000, signaling uncertainty about future construction.

Office space demand may not recover for decades, McKinsey predicts link

• McKinsey estimates office properties could lose $800 billion in value by 2030, with an average 26% drop in office valuations over five years. The decline is driven by persistent low demand, which has been falling since 2019.

• Between 2019 and 2022, total office transaction volume dropped 57%, while average sale prices per square foot fell 20%. Real-dollar asking rents also declined by 22%, signaling a structural shift in the market.

• Office attendance has stabilized at 30% below pre-pandemic levels, with workers coming in around 3.5 days per week. McKinsey projects demand may never return to pre-pandemic levels, potentially falling 20% to 38% lower by 2030 depending on the city.

Mapped: How Far $1 Million Gets You in Retirement, by U.S State

Will federal government job cuts impact the housing market?

Exploring the next big travel trends: insights from Momentum 2025 Report

Multifamily market outlook: 10 insights from the NMHC Annual Meeting

Net lease investment trends

Manufacturing demand for industrial space is mushrooming

List of Proptech Startups That Just Got Funded

Visualizing America’s $29 Trillion Economy by State

Late 70's rock glory

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