L.A. residents moving to the Northeast

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Uptick in L.A. residents moving to the Northeast link

• The wildfires in Southern California have decimated over 40,500 acres and 12,300 structures, pushing many L.A. residents to relocate to the Northeast and Florida. High-profile areas like Pacific Palisades have seen multimillion-dollar homes destroyed.

• Major moving companies like U-Haul report more people leaving California than arriving, with 51% of outbound one-way traffic. The trend began during the COVID-19 pandemic and has intensified with recent disasters.

• Economic losses from these fires are projected at $250–270 billion, with insured losses possibly reaching $40 billion. California faces a worsening insurance crisis, as major carriers stop writing policies in fire-prone areas.

Increased rent growth forecasted in 2025, after supply wave crests link

• U.S. employment grew by 1.6% in 2024, adding nearly 2 million jobs despite natural disasters and strikes slowing the pace. GDP growth and lower inflation at 2.7% boosted housing demand, with 667,000 apartments absorbed in 2024.

• Over 588,000 new apartments came online in 2024, with Dallas, Austin, Phoenix, Houston, and Atlanta leading the supply wave. Forecasts for 2025 predict a slower pace, with 470,000 new units primarily in New York, Phoenix, Dallas, and Newark.

• Nationwide rents grew by 0.4% in 2024, with Austin seeing the steepest declines and Orlando, Richmond, West Palm Beach, and Philadelphia projected to lead 2025 growth at 3.5%-4%. Rent increases are expected to average 2.5% across the U.S. in 2025.

US home price insights – January 2025 link

• National home prices rose by 3.4% year-over-year in November 2024, with a month-over-month increase of 0.06%. CoreLogic forecasts a 3.8% year-over-year increase by November 2025 despite a predicted 0.2% decline in December 2024.

• Appalachian cities like Wheeling, WV (+20%), Johnstown, PA (+16%), and Huntington-Ashland, KY/OH/WV (+14.8%) saw the strongest growth. West Virginia set new price records, while Western states like Wyoming and Idaho stayed below peak levels with declines of 2%-3.5%.

• The median U.S. single-family home price reached $395,000 in November, up $10,000 from October. Smaller Midwest metros and affordable areas continued experiencing strong demand and upward price pressures.

Many homeowners have a death grip on their properties with no plans to sell link

• 34% of U.S. homeowners plan never to sell their homes, with baby boomers leading at 43% and Gen X at 34%. Millennials and Gen Z account for a combined 28%, showing generational differences in homeownership strategies.

• High mortgage rates and rising home prices are discouraging "just-because movers," with 39% of homeowners staying put because they’ve nearly paid off their homes. Another 37% simply like their homes, and 18% want to keep their low mortgage rates.

• Home turnover rates are at record lows, with only 2.5% of existing homes sold in the first eight months of 2024. This marks a 37.5% drop compared to the 2021 sales boom, as the market struggles with affordability and low inventory.

CBRE Group to acquire Industrious link

• CBRE will acquire the remaining stake in Industrious for $400 million, completing a deal that values the company at $800 million. The transaction is set to close by the end of January 2025.

• The acquisition creates a new business segment, Building Operations & Experience, projected to significantly boost CBRE’s 2025 EBITDA and free cash flow. This segment generated $20 billion in revenue in 2024.

• Industrious has grown its revenue by over 50% annually since 2021, operating more than 200 units across 65+ cities. The company uses an asset-light model focusing on partnerships with property owners.

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Link to the listing

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Vidit

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