Fastest Growing (and Shrinking) Cities in North America

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10 Facts about the US Treasury Market link

CRE Investment Climate is Thawing link

• Commercial real estate (CRE) investment is beginning to recover after a challenging period. Signs of a thawing investment climate suggest that investor confidence is slowly returning.

• Interest rate stability and declining inflation are helping to create more favorable conditions for investment. These macroeconomic factors are making investors more optimistic about the market's future.

• Key sectors like multifamily and industrial properties are seeing renewed interest. Investors are particularly drawn to assets that have shown resilience during economic uncertainty.

Investor Home Purchases Post Biggest Increase in Two Years link

• Investor home purchases rose 3.4% year over year in Q2 2024, marking the largest increase since 2022. They bought 1 in 6 homes sold in the U.S., totaling $43 billion.

• San Jose and Las Vegas led the rise with a 27% year-over-year increase, while Fort Lauderdale and Providence saw the largest declines. Investors favor single-family homes, which made up 69% of their purchases.

• Low-priced homes were the most targeted, with investors buying 24.1% of them. This contrasts with 14.7% of high-priced homes and 12.1% of mid-priced homes.

Net-Lease Investment Market Rose by 11% link

• Net-lease investment volume rose by 11% in Q2 to $9.0 billion, but it is still down 14% from last year. Overall commercial real estate volume saw a slight quarterly increase but remains 3% lower year-over-year.

• The industrial and logistics sector now dominates net-lease investments, making up 57% of the market, while the office sector's share dropped to 22%. Retail investment share held steady at 21%.

• Cap rates are stabilizing after two years, with only a minor 10 bps increase in Q2, driven mainly by retail assets. The spread between the 10-year Treasury yield and net-lease cap rates remains consistent at 230 bps.

New home sales jump in July; Buyers take advantage of lower rates link

• New home sales surged by 10.6% in July 2024, reaching 739,000, driven by buyers reacting to falling mortgage rates, which dipped below 6.5% for the first time since May 2023.

• Regional sales varied significantly, with the West seeing a 33.8% increase, the Midwest up by 9.9%, and the South and Northeast growing by 2.9% and 6.9%, respectively.

• Despite a rise in buyer activity, only 21% of new homes were completed and move-in-ready, marking the highest share of finished homes since May 2020.

Wyoming and Southern Ohio/Northern Kentucky emerge as key data center locations link

• Wyoming's 728-mile high-voltage transmission line is attracting data center developers due to its connection to renewable energy, supported by companies like Meta and Microsoft already investing in the region.

• In Southern Ohio and Northern Kentucky, power availability constraints in Columbus and New Albany are driving data center development southward, where land is more affordable and power is more accessible.

• The new data center hotspots offer developers competitive advantages, such as faster access to power and lower land costs compared to major markets like Chicago and Northern Virginia.

Mapped: Fastest Growing (and Shrinking) Cities in the U.S. and Canada

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That’s some interior!

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