Office to industrial trend is here, Dallas Becomes Latest City to Ban Airbnb and more

Orlando Apartment Vacancy Expected To Hit Highest Point Since 2009 Amid Record Construction link

• Record-Breaking Construction: Orlando is experiencing a surge in apartment construction, leading to an anticipated increase in vacancy rates.

• Historic Highs: The vacancy rate is expected to reach its highest point since 2009, a significant shift in the housing market.

• Healthy Demand: Despite the increase in vacancies, renter demand is projected to remain strong through 2023, indicating a robust rental market.

Please note that the content of the article was not fully accessible, and the bullet points are inferred from the available information. For a comprehensive understanding, please read the full article.

U.S. Housing Starts Surge as Builders Rev Up Single-Family Home Construction in May, While a Housing Shortage Drags On link

• Construction Boom: U.S. housing starts jumped 21.7% in May, with a notable increase in single-family homes, reaching an annual pace of 1.63 million.

• Midwest Leads the Way: The surge in construction was primarily driven by the Midwest, where housing starts rose by a staggering 67% from the previous month.

• Resilient Demand: Despite a challenging housing market and higher mortgage rates, the demand for new homes remains robust due to a lack of options in the resale market.

Mortgage Rates Are Up, Home Sales Are Down, Prices Are Resilient link

• Mortgage Madness: Mortgage rates have hit a 7-month high, sidelining some homebuyers, but many are ready to jump back in when rates decline.

• Inventory Impact: Limited listings are propping up prices, benefiting sellers who list their homes in the current market.

• Demand Dynamics: Despite a 17% drop in pending home sales from a year earlier, homebuying demand remains resilient, with many prospective buyers ready to pounce when conditions improve.

Rental Market Tracker: Asking Rents Fall 2% in the West But Rise 5% in the Northeast, Midwest link

• Rental Rollercoaster: Nationwide, rents declined 1% from a year earlier in May, the largest drop since 2020, due to a building boom and economic uncertainty.

• Regional Ripples: While the West saw a 2.1% decline in asking rents, the Northeast and Midwest experienced increases of 5.4% and 4.9% respectively.

• Construction Conundrum: Despite a slowdown in new permitted projects, a backlog of under-construction rentals could still lead to further rent decreases.

May Housing Starts: Record Number of Multi-Family Housing Units Under Construction link

• Construction Climax: Currently, there are 994 thousand multi-family units under construction, tying the record set in July 1973.

• Single-Family Slump: Single-family units under construction are down in May compared to April, marking 136 thousand below the peak in May 2022.

• Rental Relief: The completion of these units could potentially alleviate rent pressure, despite a slowdown in new permitted projects.

The Office-to-Industrial Conversion Trend Is Here link

• Conversion Craze: Office buildings are increasingly being converted into industrial spaces, with 15.2 million square feet of office space nationwide converted to industrial use in the last two years.

• Suburban Shift: The trend is primarily seen in suburban areas, where office buildings are typically low-rise and surrounded by ample parking, making them ideal for conversion into industrial spaces.

• Urban Uptick: Despite challenges such as zoning issues and community concerns, urban landlords are beginning to consider converting lower floors of office buildings into storage spaces.

CRE Transactions Have Crashed 70% Year Over Year link

• Stunning Slump: Commercial real estate transactions of $5 million or more have plummeted by a staggering 70% year over year, totaling only $37 billion.

• Below Average: The Q1 figure is lower than the 10-year average transaction pace, indicating a significant slowdown in the market.

• Historic Lows: If the current pace continues, the annualized result of $148 billion would be lower than every other year since at least 2013, highlighting the severity of the downturn.

Purpose-Built Student Housing Is Outperforming Multifamily link

• Student Success: Purpose-built student housing has been a consistent performer for developers, even during economic downturns, offering a robust list of amenities and comfortable living spaces.

• Post-Pandemic Performance: With students returning to colleges and universities post-pandemic, this asset class continues to attract a steady stream of residents.

• Outperforming Multifamily: For the first time in a non-contractionary period, purpose-built student housing is outperforming conventional multifamily housing, indicating its strong market position.

More People Moved Across State Lines in 2021 Than in 2019 link

• Migration Momentum: Nearly 7.9 million people moved between states in 2021, up from almost 7.4 million in 2019, indicating a significant increase in interstate migration.

• Tax and Regulation Refugees: Many people are moving away from high-tax, high-regulation states to more friendly states, contributing to this trend.

• Population Powerhouses: Highly populated states like California, Texas, and Florida experienced some of the largest state-to-state flows, with people leaving these states tending to move to other highly populated or neighboring states.

Here’s Where Industrial Is Booming This Month link

• Retailer Rush: The booming business of retailers selling household essentials is proving beneficial for owners of distribution and warehouse space.

• Leasing Lifeline: Despite a moderation in overall industrial leasing volume for nine months, leasing to retailers selling daily necessities remains healthy.

• Sam's Club Surge: Sam's Club has been one of the most active lessees, contributing to the industrial boom.

Dallas Becomes Latest City to Ban Airbnb link

• Short-Term Rental Shutdown: Dallas lawmakers have voted to ban short-term rental platforms like Airbnb and Vrbo in neighborhoods with single-family zoning, following complaints from residents about quality of life issues.

• Regulation Ramp-Up: Commercial areas and neighborhoods not limited to single-family zoning will still allow short-term rentals, but with stricter regulations, including registration requirements and a hotel tax fee.

• Citywide Crackdowns: The decision in Dallas is part of a growing trend of cities limiting or outright banning short-term rentals, despite the continued growth in demand for these types of accommodations.

Real Estate Investment and Property Management Platform Picket Lands $20M link

• Picket's Progress: Seattle startup Picket Homes has raised $20 million in a Series B funding round to enhance its platform that aids investors in analyzing, purchasing, and managing single-family rental properties.

• Investment Influx: Picket facilitated over $270 million in single-family rental home investments in the previous year, mainly with institutional customers. The company aims to expand by targeting individual investors.

• Critics' Concerns: Despite criticism that real estate investing companies contribute to housing scarcity and price hikes, Picket maintains its mission is to improve rental experiences for tenants through its resident mobile app and services team.