How is agentic AI changing real estate

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Consumer sentiment hits historic low as inflation fears hit 44-year high link

• The University of Michigan’s consumer sentiment index fell to 50.8 in April, the second-lowest level since 1952. Sentiment has dropped over 30% since December due to growing fears about tariffs and recession.

• Consumers expect inflation to rise 6.7% over the next year, the highest since 1981. Despite lower inflation in March, fears about Trump’s tariff policy are driving expectations up.

• Financial strain is showing as more Americans raid their 401(k)s and credit card delinquencies hit record highs. The share of credit accounts over 90 days past due reached a new peak in Q4 2024, according to the Philadelphia Fed.

Federal funding cuts could impact life sciences real estate link

• A proposed NIH funding cap could slash $880 million from New York State, already leading to the delay or loss of over 100,000 square feet of life sciences space in New York City. Smaller spaces under 15,000 square feet are still seeing strong demand.

• San Francisco logged $2.5 billion in life sciences investment across 87 deals, while Boston followed with $1.9 billion across 69 deals. Biogen is relocating to a 580,000-square-foot tower in Kendall Square by 2028 under a 15-year lease.

• Denver-Boulder saw record startup activity with 35 new ventures between 2023 and 2024. Northern New Jersey added 400,000 square feet of new life sciences space with BeiGene’s cancer research facility in Hopewell.

Redfin: Tariffs could spur apartment rent increases link

• The median U.S. asking rent was $1,610 in March, down 0.6% year-over-year but up 0.4% from February. Rent prices have hovered within 1% of last year’s levels for 13 straight months.

• Tariffs could raise construction costs by making building materials more expensive, reducing new apartment supply. That drop in supply may cause rents to rise faster than expected.

• Economic uncertainty from tariffs could push more people to rent instead of buy, increasing rental demand. The income needed to afford a median home is $116,633 versus $64,160 for a typical apartment.

How is agentic AI changing the landscape of real estate

• Agentic AI is taking over key real estate tasks by acting autonomously—handling property searches, negotiating deals, and even optimizing lease terms. Tools like ReAlpha’s Claire and planetRE’s valuation engine show that platforms are already doing what agents used to manage manually.

• It's reshaping investment strategies with predictive analytics, real-time pricing, and self-learning portfolio management. Investors can now make decisions faster with better accuracy and less risk, especially in fast-moving urban markets.

• Mortgage approvals, maintenance, and tenant interactions are now being handled by AI with little human oversight. Cities like San Antonio and Dallas are also seeing AI assist in site selection and construction forecasting for smarter urban development.

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Most home sellers still rely on agents, but trust issues linger link

• While 91% of sellers plan to use agents, only 63% think they’re “inherently necessary,” down from 73% last year. Trust is slipping too, with only 70% saying they trust agents, compared to 81% in 2024.

• Cost concerns are driving sellers to explore alternatives — 52% have considered selling without an agent and 36% would accept a lower offer to avoid commissions. Still, 67% say current commission structures are fair if the sale is faster or at a higher price.

• Sellers want help pricing and marketing their homes, but 53% would still hire an agent unfamiliar with the local market. Nearly half would consider using AI to find buyers, and 65% are open to a digital real estate + mortgage marketplace.

California real estate market forecast for 2025 link

• Home prices in high-demand cities like San Francisco and Los Angeles are expected to grow moderately by 3–5% in 2025. More affordable inland areas like Fresno and Bakersfield could see stronger gains of up to 7% as buyers shift away from expensive coastal markets.

• Inventory remains tight, with Los Angeles and San Francisco holding only 2.8–3.0 months of supply. However, new construction permits are up about 5% in parts of Southern California, offering some relief to buyers.

• Mortgage rates may dip slightly to around 6.5%, boosting affordability and potentially saving borrowers $150/month on a $500K loan. This could revive buyer interest, especially among first-time homebuyers across competitive regions.

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