Seniors Housing On The Rise

Seniors Housing Performing Better Than Pre-Pandemic link

• Seniors housing has experienced a significant recovery, outperforming pre-pandemic levels. This resurgence, detailed in a Marcus & Millichap report, marks a notable turnaround in the sector.

• Since spring 2021, the sector has seen a net absorption of over 103,000 units. This rapid growth, occurring in just 10 months post-COVID-19, underscores the increasing demand and robust health of the seniors housing market.

• The pandemic's impact on seniors housing was profound, but the sector's rebound has been even more remarkable. The absorption of units more than doubled compared to the number relinquished during the pandemic's worst phase, signaling a strong recovery and investor confidence.

Where Remote Workers Have it Best (and Why That Matters for Their Employers) link

• Employers are increasingly adopting hybrid and full-time remote work models, with 35% of employees now having the option for full-time remote work. This shift is creating new opportunities for employers to attract and retain talent, especially in competitive sectors.

• Minneapolis-St. Paul-Bloomington ranks as the top metropolitan area for remote workers, excelling in Quality of Life, Workforce and Earnings, and Remote Environment.

• Quality of Life is a key factor in location selection for remote work, with the San Francisco-Oakland-Berkeley area leading in this category. Affordability, Workforce and Earnings, and Safety are also important, with different metro areas excelling in each category, offering diverse options for remote workers and their employers.

Signs of a buyer's market emerge as home seller concessions return link

• In the latter months of 2023, as mortgage rates reached up to 8%, sellers began offering various concessions to attract buyers. This marks a significant shift from the recent past where buyers often waived contingencies to stand out in competitive offers.

• A report by Redfin indicates that 35% of home sales involved seller concessions in the three months ending October 31, a notable increase from two years ago. These concessions include financial aids like money towards repairs, closing costs, or mortgage rate buydowns, reflecting a transition to a buyer's market.

• In major markets like New York City, sellers are resorting to substantial concessions to move high-priced properties. Examples include paying a full year of mortgage payments upfront or buying down mortgage rate points, highlighting the lengths sellers are going to in order to close deals in a changing market landscape.

$176B plan unveiled to rebuild Northeast rail corridor link

• The Northeast Corridor Commission announced a 15-year, $176 billion plan to revamp the Boston-New York City-Washington, D.C. rail line. This ambitious project aims to accommodate future growth and improve infrastructure resilience.

• Amtrak expects ridership to surpass pre-pandemic levels by 2024, with the plan facilitating 60% more commuter trains and 50% more Amtrak trains between Boston and New York City. It also nearly doubles Amtrak trains between New York City and Washington, D.C.

• The project is set to shift 38 million car trips and 600,000 short-haul plane trips to rail annually, reducing carbon emissions. Approximately 40% of the funding is secured through federal, state, and local sources, with the 2021 infrastructure law contributing significantly.

Industrial and Multifamily Sectors Face Challenges, Slowdown link

• US industrial net growth has plummeted by 68% in comparative third quarters, indicating a significant slowdown in demand. This downturn is attributed to challenging economic conditions, supply chain recovery, and cautious corporate behavior.

• The multifamily sector is experiencing its highest vacancy rates since mid-2021, jumping from 4.6% to 7%, coupled with the lowest record of rent growth, dropping from 10.9% to just 0.9% over the last six quarters. Over one million multifamily units are currently under construction in the US, the most since the early 1970s.