Permits to Build U.S. Apartments Down Whopping 30%.

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Permits to Build U.S. Apartments Have Dropped Nearly 30% Since the Pandemic link

• Builders are obtaining permits for 13 multifamily units per 10,000 people in 2024, down from 18 in 2021-2023, a nearly 30% decrease. High borrowing costs and a surplus of new units are the main reasons for this decline.

• Cape Coral, FL, leads in new multifamily housing permits with 27 per 10,000 people, followed by Austin, TX. However, Austin has seen a significant slowdown in permit issuance.

• Rent prices are falling in many metros where multifamily construction boomed during the pandemic. Median asking rents have decreased in 16 out of 33 metros, with Jacksonville and Austin experiencing the largest drops.

Nearly half of Gen Zers get help from mom and dad, report finds Link

• Nearly half of Gen Zers aged 18-27 rely on financial help from their families, reflecting the high cost of living. More than half of them feel their income is insufficient to support their desired lifestyle, with daily expenses as a major barrier.

• Gen Z faces greater financial challenges than previous generations, with lower adjusted wages and higher student debt. About 15% of Gen Zers have maxed out their credit cards, increasing their financial strain.

• Housing costs are a significant burden, with many young adults spending more than the recommended 30% of their income on rent. Two-thirds of those surveyed by Bank of America allocate over 30% of their paycheck to housing, and nearly a quarter spend over 50%.

Rent Prices Are Dropping Across Florida’s Most Populous Metros link

• Jacksonville saw a record 12.4% drop in median asking rent year-over-year, the biggest decline in the city's history. Tampa, Orlando, and Miami also experienced significant declines at 6%, 4.8%, and 3.8% respectively.

• Austin, TX experienced a 12.6% drop in median asking rent, the largest decrease among the 33 metros analyzed. High apartment construction during the pandemic has led to increased competition among property owners, driving down prices.

• Despite these declines, the nationwide median asking rent increased by roughly 1% in June. This rise marks the highest level since 2022, highlighting differing regional rental trends.

Strong Apartment Occupancy in Boulder, Despite Extreme Seasonality link

• Boulder’s apartment occupancy rate is 94.8%, surpassing Denver’s 93.8%. This indicates a stronger rental market in Boulder despite its smaller size.

• The University of Colorado Boulder, with 37,000 students, significantly impacts occupancy rates. Seasonal fluctuations occur, with lows in summer and peaks in autumn.

• Boulder has about 31,000 apartment units, roughly one-tenth of Denver's 336,000 units. This smaller inventory helps maintain higher occupancy levels.

• Occupancy trends highlight the importance of academic schedules on local rental markets. Student influxes drive demand cycles in university towns like Boulder.

Homeownership Rate by Age

(The homeownership rate has in recent years increased much more for younger households, see chart below.)

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Investors have lined up over $250 billion to scoop up distressed commercial real estate in these asset classes.

Incomes are rising for experienced Realtors but falling for younger ones 

Insights From Apartment List’s National Rent Report – July ’24 

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Mansion on 16 acre, upstate New York estate for $350k

Link to the listing

That's all, folks.

Cheers,

Vidit

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