Ranked: The 20 Most Livable Cities in the U.S.

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Weekly housing trends view—data for week ending February 1, 2025 link

• The median listing price dropped by 1.0% year over year, marking 36 straight weeks of flat or falling prices. Price reductions are up 29.0% compared to last year, with more homes sitting on the market longer and sellers cutting prices to attract buyers.

• New listings rose 4.2% year over year as more sellers entered the market, continuing a four-week trend of increased inventory. Despite high mortgage rates, homeowners are listing due to life changes like job relocations or family growth.

• Active inventory increased by 26.7% from last year, making it the 65th consecutive week of annual inventory growth. Homes are staying on the market 7 days longer than last year, pushing the market further in buyers' favor.

Industrial vacancy rate hits 10-year high despite robust leasing link

• Industrial leasing activity remained strong in 2024, with 838.6 million sq. ft. leased, the third-highest annual total ever. Much of this leasing came from tenants relocating from older buildings into newer, first-generation spaces.

• Despite high leasing volume, 20 of 59 tracked industrial markets saw negative net absorption in Q4, pushing the overall vacancy rate to 6.0%, the highest since early 2015. Annual net absorption dropped to 151.4 million sq. ft., the lowest level since 2010.

• Both asking and taking rents declined for the third straight quarter as landlords prioritized keeping properties occupied. New construction deliveries also slowed, with 85.8 million sq. ft. completed in Q4, the lowest quarterly total since mid-2021.

The American Dream Now Costs $4.4M link

• The cost of achieving the American Dream has jumped to $4.4 million, up by over $1 million from the previous year. Homeownership alone accounts for nearly 20% of this total, with an average 30-year mortgage costing $929,955.

• Despite rising costs, 75% of Americans still see homeownership as a key part of the American Dream, though only 59% believe it is achievable. Baby boomers are the most confident in homeownership, while Gen Z is the least.

• Mortgage rates are expected to average 6.3% through 2025, ending the year at 6.2%. High rates have made buyers more selective, with some adjusting to the "new normal" while others remain stuck in a cycle of renting.

U.S. logistics property rents drop 7%, first decline in 15 years link

• Logistics rents in the U.S. and Canada fell by 7% in 2024, marking the first decline in 15 years, while globally, rents dropped only 5%. Despite this, U.S. market rents remain 59% higher than in 2019, suggesting a likely rebound in 2025.

• Vacancy rates climbed to 7.1% in the U.S., up 130 basis points, as net absorption dropped 30% due to economic uncertainty. Markets like Phoenix saw prolonged lease-up times, forcing landlords to offer concessions such as free rent.

• Demand shifted toward Class A properties, keeping their rents stable, while Class B and C properties saw price cuts as tenants consolidated into modern facilities. Concessions drove half of market rent movements, but with new construction slowing, a market recovery is expected by 2025, with stronger gains projected for 2026.

CRE sentiment index soars to new high: CREFC link

• The CREFC sentiment index jumped 5% to 126.6 in Q4 2024, marking an all-time high from the previous record of 121.1 in Q3. Optimism is driven by expectations of increased transaction volumes and stable market fundamentals.

• 95% of respondents anticipate at least a 10% increase in transaction activity in 2025, with multifamily (30%) and office (23%) seen as the best risk-adjusted opportunities. However, 51% remain concerned about prolonged high interest rates.

• 86% of investors and 91% of financiers expect a rise in activity, with bidding on transactions up more than 40% year-over-year in Q4 2024. Institutional capital is increasing in deals over $100 million, and core capital is returning as valuation marks align with market prices.

Texas, Arizona lead boom of new build-to-rent homes link

• The build-to-rent sector is expanding fast, with over 110,000 single-family rentals under construction nationwide. Texas leads with 21,812 units, followed by Arizona with 13,972 units.

• Metro areas like Phoenix, Dallas, and Atlanta are seeing SFR inventory increases between 70% and 90%. Smaller states like Nebraska and Rhode Island, which historically had low inventory, are now catching up with rapid growth.

• High mortgage rates and rising home prices are driving demand for rentals over homeownership. Developers are adapting by aligning BTR projects with renters' needs, cementing the sector’s role in the housing market.

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Ranked: The 20 Most Livable Cities in the U.S.

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