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Apartment market logs seventh quarter of record supply link

• The US apartment market hit a 50-year high in new supply, with over 160,400 units completed in Q3 2024 and 155,400 units in Q4 2024. These levels nearly doubled the 10-year quarterly average of 89,700 units.

• The South led in new deliveries with 89,100 units in Q4 2024, followed by the West with 26,100 units. The Northeast saw record completions at 14,600 units, while the Midwest added 15,500 units.

• Dallas, Austin, and Phoenix had the most new deliveries, each exceeding 8,000 units in Q4 2024. These cities also led in total annual deliveries, each surpassing 26,000 units for the year.

How much you need to earn in every state to buy a home link

• In Montana, the gap between the required income to afford a home and the median income is the highest, with a $178,017 income needed to purchase a median-priced home of $604,500. The state’s median household income is just $70,800—less than half of the needed amount.

• Illinois stands out as the most affordable state relative to income, with a median household income of $80,306. Buyers need just 7% more than the state’s median income to afford a home, including taxes and insurance.

• West Virginia offers the lowest barrier to homeownership, with a median home price of $249,000 requiring an income of $73,327. This figure is still 30% higher than the state’s median income of $55,948.

• click on the link to see the rest of the list.

Multifamily core asset IRR targets rise as underwriting stabilizes link 

• Core multifamily unlevered IRR targets increased by 12 basis points in Q4, reaching 7.76%, the same as Q1 but slightly below Q4 2023. Meanwhile, core going-in cap rates held steady at 4.90%, with exit cap rates at 5.05%.

• IRR targets rose in Atlanta, Austin, Chicago, and Washington, D.C., while Los Angeles and Philadelphia saw declines. Buyer sentiment for core and value-add assets was mostly neutral or positive, but seller sentiment was weaker, especially in the Sun Belt.

• Assumptions for core asset rent growth rose for the second straight quarter from 2.5% to 2.7%, driven by increases in Atlanta, Philadelphia, and Seattle. Value-add IRR targets fell by five basis points to 9.96%, with exit cap rates also dropping slightly.

Medical outpatient occupancy reaches 92.8% amid aging population, spending surge link

• Medical outpatient buildings (MOBs) have reached a 92.8% occupancy rate after 15 consecutive quarters of growth. Absorption is outpacing new construction by nearly 3 million square feet annually.

• The aging U.S. population is driving demand, with 61 million people currently over 65 and expected to rise to 70 million by 2030. Seniors account for over a third of U.S. healthcare spending, which is projected to jump 31% to nearly $2 trillion.

• Transaction activity for MOBs surged in 2024, with a 62% year-over-year increase in the first three quarters. Investors expect continued Federal Reserve rate cuts, leading to cap rate compression in Q3.

Move over RVs, here’s a look inside ai-transformer homes link

• The AI-Transformer Home is a 400-square-foot smart home priced at $98,000, significantly lower than the U.S. median home price of $402,502. It uses cutting-edge AI to control heating, cooling, lighting, and appliances, redefining sustainable living.

• Over 300 customers have pre-ordered this innovative housing solution using cryptocurrency, with deliveries starting in late 2026. The home can expand from 195 to 400 square feet, offering flexibility for modern families.

• AC Future also unveiled an RV and trailer version, both featuring expandable living spaces of up to 400 square feet. The drivable RV debuted at CES 2025, receiving praise for its futuristic design and EV engine option.

Apartment Supply Nearly Triples in this submarket

• Central Nashville’s apartment stock grew 168.5% over the past decade, adding about 21,700 units. The submarket now has 34,614 conventional apartment units, making it 20% larger than any other submarket in the city.

• The last five years saw Central Nashville outpace all other local submarkets for new supply, overtaking previous leaders like Murfreesboro/Smyrna. In 2014, it ranked behind several areas but has since become the primary hub for new apartment construction.

• Only four U.S. submarkets experienced faster apartment supply growth in the last decade—Frisco and Rockwall/Rowlett/Wylie in Dallas grew over 230%, Nampa/Meridian/Caldwell in Boise expanded by 211%, and Washington, DC’s Navy Yard/Capitol South surged by 193%.

• link

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Kansas in the house or vice versa🤔

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Vidit

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