Millions of homes lack flood insurance

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Risk with cutting interest rates too much too quickly link

• Financial conditions are easing significantly with inflation nearing 2%, and the Atlanta Fed's GDP estimate for Q3 2024 is 3.1%. Interest rates, which rose since March 2022, are now declining without triggering a recession.

• There is no immediate shock in the economy, which contrasts with past recessions like the 2020 COVID crash or the 2008 Lehman collapse. Without shocks, households continue to spend steadily, avoiding any sudden stops in economic activity.

• The risk of cutting interest rates too much could result in overheating the economy. Despite "Goldilocks" conditions—neither too hot nor cold—the Fed remains cautious about future rate cuts.

Lab space glut grows amid slowing life sciences leasing link

• Of the 21.2 million square feet of lab and R&D space under construction, 72% remains unleased, reflecting the sector’s slow absorption and developers' cautious approach. Leasing activity picked up slightly in Q2 2024 but still faces hurdles.

• Construction costs for life science projects have risen 20-25% over pre-pandemic levels, driven by complex requirements like advanced HVAC systems, emergency power generators, and more specialized designs. This cost inflation is impacting project timelines and feasibility.

• Major markets like Boston, San Francisco, and San Diego are experiencing high vacancies, with San Francisco seeing nearly two million square feet of negative absorption in the past year. This oversupply is pushing developers to pause speculative builds.

Here's How the Next President Could Reshape Industrial Real Estate link

• The November election could have a significant effect on industrial real estate users and landlords. Tariffs on Chinese goods, which currently total $380 billion, could rise by an additional $18 billion over the next two years, with both candidates supporting increases. This might prompt companies to stockpile inventory but could also reduce consumer demand due to higher prices.

• Domestic manufacturing may accelerate in regions like the Southeast and Midwest if protectionist policies grow, creating more demand for warehouse and distribution spaces. Meanwhile, port markets may experience slower growth as imports decline.

• Energy policies diverge sharply, with Harris's focus on renewables likely benefiting states like Texas and Ohio, while Trump’s support for oil and gas could boost industrial leasing in places like Dallas and mining areas. The sector's future depends heavily on these energy decisions.

Helene dumps rain on millions of U.S. homes that lack flood insurance link

• Helene's massive rainfall caused flooding across the Southeast and into Appalachia, with some areas like Busick, NC seeing over 29 inches of rain. Most homes affected lack flood insurance.

• Only about 4% of Americans have flood insurance, a major concern since inland regions hit hardest typically have coverage rates as low as 2.5%. Rising flood insurance costs are driving people to drop their policies.

• The physical damage from Helene is estimated between $25 billion to $30 billion, with most of the losses uninsured.

Redfin reports newly built apartments are starting to fill up faster, but at a slower pace than last year link

• 54% of newly completed apartments in Q1 2024 rented within three months, an increase from 47% the previous quarter but down from 58% a year earlier. This shows a modest recovery but remains the second-lowest absorption rate since mid-2020.

• Studio apartments rented out the fastest at 58%, driven by a drop in studio completions by 7.1%. In contrast, one-bedroom and two-bedroom completions surged over 20%, but their rental absorption fell from 58% to 53%.

• The national vacancy rate for larger apartment buildings reached 7.8%, indicating that supply is exceeding demand. Renters now have more negotiating power as more units become available, especially in Sun Belt regions where construction remains high.

Data centers’ share of total power consumption link

• Data centers now account for 26% of Virginia's total power usage, reflecting the rapid growth of digital infrastructure. This is largely due to the demand for AI and cloud-based services.

• The power consumption from data centers highlights the need for significant long-term investments in energy. Sustaining this level of consumption will require innovations in both power generation and efficiency.

• No data is available for several other states, underlining gaps in reporting or infrastructure capacity across the U.S.

What happens to housing markets after a hurricane?

From Coast to Coast: Which Are the Most Livable Places in the U.S. in 2024?

The forecast remains mostly sunny for real estate investors

20 cities with the highest homeownership rates

Takeaways from Zillow’s 2025 Consumer Housing Trends Report

How real estate investors plan to vote in the U.S. election

With olive oil prices soaring, more fake products are hitting shelves link

• Global olive oil prices have nearly tripled since 2021, reaching $8,700 per metric ton by August 2024, driven by extreme weather events like droughts in Spain. Spain's olive oil production plummeted by over 50% for the 2022-23 season, drastically reducing global supply.

• Fraud cases involving counterfeit olive oil have surged, with 50 cases in Q1 2024 in the EU, compared to just 15 cases in the same period of 2018. Criminals are profiting from the price hike by selling mislabeled or fake products.

• Some fake olive oil has been found to be "lampante," which is unsafe for human consumption. With olive oil production still struggling, stricter product traceability will be crucial to protect public health.

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