Master-planned communities are gaining popularity

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Estimated read time: 3 minutes 34 seconds.

Update: Lumber Prices Down 14% YoY link

• The new Lumber Futures (LBR) contract is currently priced at $503.00 per 1000 board feet, marking a 14% decrease from the previous year's price of $585.50.

• Seasonal demand patterns typically see lumber prices peaking around April or May. However, this year did not witness a significant price surge, likely due to a slowdown in the housing market.

Master-planned communities are gaining popularity link

• Master-planned communities are gaining popularity due to their spacious design and supportive ecosystem for job opportunities. Single-family rentals are now becoming a significant part of these communities.

• The build-to-rent housing sector, valued at $4.4 trillion, showcases stability. Data from a 2022 Berkadia report indicates that average rents rose by $6 to $2,089 through April of that year. Furthermore, a 2023 Yardi Matrix report highlighted a record completion of 14,858 units in 2022, with 6,600 units delivered by June 2023.

• The attitude towards build-to-rent in master-planned communities has shifted positively. These communities now see the inclusion of build-to-rent units as an opportunity to attract a diverse range of consumers, from those new to the market to those saving for a down payment.

Historic Highs Are Behind for Self Storage link

• As of July, the national street rate for storage dropped to $141, failing to match the rates of $143 in July 2021 and $147 in July 2022. However, this is still higher than the $126 rate in both July 2019 and July 2020.

• Street rates for 10×10 non-climate-controlled units saw a decline year-over-year in all top 31 metros. The same trend was observed for 10×10 climate-controlled units.

• Nationally, there were 4,916 self-storage projects in various stages of development as of July. This includes 1,977 planned projects, 1,375 abandoned facilities, and 830 developments under construction.

Housing September 4thUpdate: Inventory increased 1.1% Week-over-week; Down 7.9% Year-over-year link

• Active single-family inventory rose by 1.1% in a week, reaching 509 thousand units by September 1st, a notable increase from 503 thousand the previous week.

• Year-to-date, housing inventory has seen a 3.7% rise, and a significant 25.5% surge from the seasonal bottom observed 20 weeks prior.

• Despite the recent growth, inventory remains 7.9% lower than the same week in 2022 and a staggering 47.0% below 2019 levels, suggesting a potential trend of inventory levels staying below 2022 for the rest of the year.

Apartment Rent Growth Has Moved Into Negative Territory link

• The apartment market is cooling down with both annual and monthly rent growth now negative as per the September 2023 Apartment List National Rent Report.

• This decline marks the first occurrence since the onset of the pandemic, with the rent index dropping by 0.1% in August.

• Unlike the usual trend of rent prices rising in spring and summer, this year saw a downturn a month earlier than the previous year. This shift is significant, especially considering that in early 2022, all 100 surveyed cities reported positive year-over-year rent increases.

Top 10 Self Storage Markets for Deliveries in H1 2023 link

• Developers finished over 23.8 million sq. ft. of storage space in the first half of 2023, marking a rise from 21.2 million sq. ft. in H1 2022.

• Chicago led with a 424% growth in storage space, completing over 1.2 million sq. ft. in H1 2023 compared to 233,438 sq. ft. in the same period in 2022.

• Dallas-Fort Worth followed with 1.1 million sq. ft. of storage space, a significant increase from 611,785 sq. ft. in H1 2022.

• Leading self-storage markets were: Chicago with over 1.2 million sq. ft. (424% growth from H1 2022), Dallas-Fort Worth with 1.1 million sq. ft., Philadelphia with 934,773 sq. ft., Atlanta with 702,471 sq. ft., Houston with 612,393 sq. ft., Phoenix with 610,230 sq. ft., Boston with 590,870 sq. ft., Miami with 544,917 sq. ft., Orlando with 537,080 sq. ft., and White Plains with 530,104 sq. ft.

The Shift to the South: Auto Industry's New Heartland link

• Massive Growth in Small Towns: Ford's 3,600-acre site in Stanton, Tenn., once operational, is set to employ around 6,000 workers, a number 15 times the town's current population. This has led to significant planning challenges, including housing, schooling, and potential establishment of a police force

• Billions in EV Investments: Over $110 billion has been invested in EV-related projects in the U.S. since 2018. Approximately half of this investment is directed towards Southern states, marking a significant geographic shift in the auto industry

• Impact on Local Communities: While the influx of auto industry jobs in the South is seen as a boon by many, concerns arise about potential challenges. These include increased traffic, limited parking, potential crime spikes, and the fear of losing the essence of local communities