Markets with the Most Fortune 500 Headquarters + New Section

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"You don't have to be brilliant, only a little bit wiser than the other guys, on average, for a long, long, time."

― Charlie Munger

State of the Housing Market: John Burns Consulting link

• The new home market is in a "Goldilocks" period, with demand outstripping available inventory and a stable economy. High sales and healthy gross margins are reported despite elevated mortgage rates.

• Big homebuilders are growing larger and more efficient, increasing market share significantly. Public builders and those with public debt delivered 55% of all new homes in the US.

• Builders are addressing affordability by offering smaller homes, rate buydowns, and simplified designs. The new home price premium over resale homes fell to 7%, below the historical average of 16%.

• Concerns include rising unsold speculative inventory and increasing resale inventory in markets like Texas and Florida. There are also worries about the sustainability of demand with high mortgage rates.

Minimal Rent Growth Expected for U.S. Multifamily Market in 2024 link

• Advertised multifamily rents are up 1.1% year-to-date, with year-over-year increases holding steady at around 0.6% each month. Analysts forecast a 1.7% rent growth for the year, significantly lower than the 24% gains seen in 2021 and 2022.

• Regional performance varies, with the Midwest and Northeast seeing steady rent growth due to strong labor markets and economic growth. In contrast, the Sun Belt faces rent pressures from an influx of new supply.

• Nationwide, up to 553,000 of 1.2 million units under construction are expected to come online by the end of 2024. Recent years have seen increased supply driven by high demand, rapid rent growth, and development capital influx, with 1.3 million units added between 2021 and 2023 compared to 858,000 units in the early 2010s.

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Some Luxury Retailers Opting to Buy Rather Than Lease Iconic Buildings link

• Prada spent $425 million to purchase 724 Fifth Ave. in Manhattan, where it had been leasing space since 1997. This move highlights the shift from leasing to ownership among luxury retailers.

• Kering made significant investments, including $963 million for properties at 715-717 Fifth Ave. in Manhattan and $1.4 billion for an 18th-century building in Milan's Via Montenapoleone. These acquisitions enhance brand recognition and offer more control over the retail experience.

• The trend is partly driven by economic factors, as a CBRE analysis indicates foot traffic in top retail districts will return to pre-pandemic levels by Q4 2023. Building ownership provides insulation from rising rents and offers opportunities to develop new customer channels.

Markets with the Most Fortune 500 Headquarters in 2024

Cities With the Most Homes Priced Below $200,000 

This is Where Multifamily Distress Can Be Found

States That Face the Highest Risk of Housing Market Slowdowns 

Top 10 U.S. Housing Markets Least At-Risk of Declines in Q1 2024 

This asset has more than 76,000 Units Under Construction in the South 

Latest Proptech Funding Rounds

Which Countries Have Universal Health Coverage?

$1.6M ‘Concrete Home’ Offering A Cool Oasis link

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That's all, folks.

Cheers,

Vidit

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