Mapped: The Top 5 States Americans Are Leaving

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

CoreLogic: Single-family rent growth drops to four-year low link

• U.S. single-family rentals posted a 2% rent growth year-over-year in September 2024, a notable drop from the pre-pandemic average of 3.5%. This marks the lowest annual growth in over four years and signals a broader cooling trend.

• Detroit led U.S. metro areas in rent growth at 5.2%, with Seattle (5%) and New York (4.9%) following. Rent prices remain highest in metros like New York and Seattle, where median rents exceed $3,000.

• High-end rental properties experienced faster price growth compared to low-tier rentals. This trend reflects a shift in affordability and spending patterns as renters leverage economic stability for premium housing options.

Analysis: Class B office outperforms Class A in some markets link

• Class B office spaces in suburban markets are performing better than commodity Class A properties due to lower availability rates. This trend highlights the importance of cost-efficiency and adaptability in tenant retention.

• Rents for Class B properties have seen significant gains in central business districts since 2020, contrasting with flat or declining rents for Class A offices. Non-CBD Class B properties have shown the best operational performance.

• Trophy office assets in cities like New York command high rent premiums but have seen a 5.9% decline in rent per available foot since 2020. Debt constraints make it difficult for Class A property owners to lower rents to compete effectively.

Real estate investors purchased 16% of homes in Q3 2024 link

• Investor purchases fell slightly to 15.9% of total home sales in Q3 2024, down from 16.2% a year earlier, marking the lowest share since late 2020. This reflects a cautious investor approach due to high home prices and elevated mortgage rates.

• Miami led in investor market share at 28.2%, followed by Anaheim (24.3%) and San Diego (23.3%), while Detroit saw the highest ROI at 135%. Despite their popularity, Miami and Fort Lauderdale showed significant drops in investor purchases, with declines of 19.4% and 23.8%, respectively.

• Low-priced homes made up 45.7% of investor buys, driven by their affordability and rental market appeal. High acquisition costs and climbing insurance rates, especially in disaster-prone areas like Florida, are deterring both investors and individual buyers.

The potential impact of immigration policies on housing link

• Immigrants account for 30% of the construction labor force, making the industry highly vulnerable to immigration restrictions. Deportations and reduced immigration under the Trump administration could significantly shrink the labor pool, leading to higher construction costs and slower housing supply growth.

• Goldman Sachs projects a drop in net immigration to 750,000 annually, compared to an average of 1 million between 2017-2019 and a peak of 3 million in 2023. This decline will weaken the labor market and curb economic growth, particularly affecting housing availability.

• Recent immigrants often have minimal immediate housing demand, as they typically live in shared accommodations or public housing. However, reduced immigration in the long term could result in less demand for new housing overall, moderating any potential gains from Trump’s proposed affordability measures.

Why investors are flocking to Palm Beach County's booming market link 

• Palm Beach County has attracted over $39 billion in income and wealth post-pandemic, leading all U.S. counties in this measure. Its appeal stems from a mix of low taxes, warm weather, and strong infrastructure development efforts.

• Related Ross is investing heavily in luxury condos, mixed-use retail, and educational infrastructure, while avoiding industrial projects. They are also targeting live entertainment venues and projects catering to young professionals and families.

• Limited construction activity in the region is creating a favorable environment for developers with existing projects, with new supply set to enter a less crowded market in 2-3 years. Strong migration trends to South Florida show no signs of slowing.

Mapped: The Top 5 States Americans Are Leaving

Three reasons multifamily demand is soaring

Four challenges facing commercial real estate lenders at the moment

3 trends take center stage in memory care design 

Why more Americans are choosing to rent long-term

List of Proptech Startups That Just Got Funded

US Houses Prices In 1950 vs 2024 (Accounting For Inflation)

I'd live here for sure

Link to the listing

That's all folks. Let me know what you think of the email. Quite a lot went into it. If these emails aren't for you anymore, you can unsubscribe here.

Cheers,

Vidit

Instagram

P.S - Read past newsletters here