People are stealing tiny homes

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The number one theme for markets in 2025 link

• The Federal Reserve expects interest rates to remain higher for longer to control inflation and bring it down to the 2% target. This approach aims to slow consumer spending, capital expenditures, and corporate earnings.

• Markets and the Federal Reserve have consistently revised their expectations upward for where the Fed funds rate will be through 2026. This signals sustained tight monetary policy ahead.

• Elevated interest rates will significantly impact asset allocation, raising the bar for equity returns and shifting the balance between debt and equity investments in 2025.

What’s happening in the markets with the highest supply? link

• Submarkets with annual inventory growth exceeding 10% saw Class A rent premiums shrink to under 15%, while low-supply submarkets maintained a median premium of 22%. This indicates pricing pressure on luxury apartments in high-growth areas.

• Detroit’s Royal Oak/Oak Park recorded the highest Class A premium at 66% above Class B rents, followed by Pittsburgh’s Westmoreland/Fayette Counties at 61%. These submarkets had minimal to no inventory growth over the past year.

• Indianapolis’s Greenwood/Johnson County saw the largest Class A and B rent premiums in high-supply submarkets, at 29.1% and 25.1%, respectively. Austin and Houston submarkets also ranked high, with premiums nearing 27%.

Even mobile-home prices keep rising link

• From 2018 to 2023, the average sale price of new mobile homes rose by 58% to $124,300, while single-family home prices increased by nearly 38% to $409,872. Growth has slowed compared to the 77% rise reported in the previous five-year period.

• Kansas saw the highest increase in mobile home prices, rising nearly 85% to $117,800, followed closely by Connecticut at 83% and Georgia at 79%. Washington recorded the highest average price at $164,100, about $40,000 above the national average.

• Indiana had the cheapest average mobile home price at $103,000, despite a 62% increase since 2018. Western states, including California, Oregon, and Arizona, dominate the list of most expensive mobile homes.

Private nuclear bunker sales are on the rise link

• The fallout shelter market is projected to grow from $137 million in 2023 to $175 million by 2030, driven by increased fears of nuclear war and global instability. Shelters range from $20,000 to multimillion-dollar luxury units with amenities like pools, gyms, and hydroponic farms.

• Experts argue that bunkers provide a psychological sense of safety rather than practical survival in an all-out nuclear war. Congressman James McGovern emphasizes investing in nonproliferation efforts over bunker infrastructure.

• Switzerland, Norway, and Finland have extensive public civil defense systems, while the U.S. lacks a national civil defense plan. Private bunker owners are advised to stock at least two weeks' worth of supplies and prepare for fallout exposure.

2024 apartment industry takeaways link

• U.S. apartment supply in 2024 was the highest since 1974, aligning with the strongest renter demand in three decades, except for 2021. Occupancy remained slightly below historical norms at around 94.3%.

• Lease renewals hit an impressive 55%, indicating strong resident retention despite flat annual rent growth, which stayed under 1%.

• Apartment construction peaked with 60% more units under development than the 2010s average but slowed significantly, with the fewest new starts since early 2013.

Tiny homes have become big targets for thieves who are stealing entire houses link

• The global tiny-home market is valued at $5.61 billion and is projected to grow to $7.31 billion by 2031. Rising housing costs and high interest rates have driven 65% of surveyed Americans to consider tiny living.

• Theft incidents have been reported in Oklahoma, Utah, and Washington, with thieves using vehicles to tow away entire tiny homes. Some owners have recovered their homes through GPS tracking, while others suffered significant financial and emotional losses.

• Financing tiny homes remains a challenge as most mortgage lenders avoid properties under 400 square feet or without a permanent foundation. Many buyers rely on personal or private loans to make their purchases.

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Link to the listing

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Cheers,

Vidit

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