Top 10 States with the Highest Number of Commercial Foreclosure

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To understand someone’s temperament, ethics, and personal elegance, you need to look at him under the tests of severe circumstances, not under the regular rosy glow of daily life.

—Nassim Nicholas Taleb

US Home Investor Share Reached New High in Q4 2023 link

• Investors made up a record 29% of U.S. home purchases in December, with a noticeable rise throughout Q4 2023. This trend surpassed the previous peak of 28.3% in February 2022 and indicates potential further increases in 2024.

• Despite rising interest rates dampening overall price appreciation, investor interest in the housing market remains robust. High rental demand and sustained property prices continue to attract investor activity, which doesn't show signs of reverting to pre-pandemic levels of below 20%.

• The long-term impact of heightened investor activity on homeownership rates remains uncertain. While around 300,000 homes annually transition from owner-occupied to investor-owned, this represents less than 0.5% of the total U.S. housing stock, suggesting a potentially minor effect on overall homeownership rates.

An Unexpected Surprise: More Homeowners Paying Capital Gains Taxes link

• In 2023, nearly 8% of U.S. homes sold were above the capital gains tax exemption limit. Previously, these rates were much lower, indicating a sharp increase in homes subject to capital gains taxes due to significant price appreciation.

• High-cost states like California and New York are seeing the largest numbers of homeowners affected by capital gains taxes. For example, California accounted for 37% of the sales above the exemption limit between 2017 and 2023.

• The capital gains exemption thresholds have not been adjusted for inflation since 1997. As a result, more homeowners are finding themselves liable for taxes on gains that were, historically, not significant enough to surpass the exemption threshold.

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Why are homes still selling with such high-interest rates link

• Persistent Market Headwinds: The housing market faces ongoing challenges like mortgage rate lock-in effects, limited inventory, and affordability issues, which dampen sales activity. These factors are expected to continue through 2024, making it difficult for the market to gain momentum.

• Influence of the Five Ds: Life events—death, divorce, diplomas, downsizing, and diapers—play a critical role in driving housing sales, often overriding financial considerations. These events are a significant force behind the increase in existing-home sales, as they prompt homeowners to make lifestyle changes that involve buying or selling homes.

Highest Paid Occupations in Construction in 2023 link

• Construction CEOs earn top dollar, with half of them making over $172,000 annually. This highlights the significant earning potential at the executive level within the industry.

• Specialized trades command higher wages; for example, elevator installers and repairers earn a median of $103,340 per year. Those in the top 25% of their field can make at least $129,090, emphasizing the value of specialized skills.

• Wage growth in construction outpaces many other industries, with a 7.3% increase in the overall median salary. Lower-paid occupations have seen faster wage growth, such as drywall installers whose median wage grew by 11%.

Latest Proptech Funding Rounds

• SWTCH Energy, a Canadian MF EV charging solution, raised a $27.2M B round.

• Homium, who tokenizes home equity loans, raised a $10M A round.

• Lawhive, a British AI-powered LegalTech startup, raised a £9.5M Seed round.

• Centrifuge, a Swiss DeFi platform for RE assets, raised a $15M A round.

• Rivet Work, a const. workforce mgmt. platform, raised a $6M round led by B&M.

• Faura, a platform to reduce homeowner disaster risk, raised a $500K round.

Ohio on a Self Storage Development Spree, Leads the Midwest in New Supply link

• Ohio leads Midwest self-storage growth, delivering 1.7 million square feet in 2023. It is set to continue its top position with an expected 1.6 million square feet in 2024, with most developments around Columbus.

• Decreased self-storage rates accompany increased supply; Ohio sees a 2% drop in rental prices. Sixty-six percent of Ohio cities reported lower self-storage rates, while cities like Heath saw rates rise due to low supply.

• Population growth and housing market dynamics fuel demand for more storage. Ohio’s self-storage space per capita stands at 6.2 square feet, below the national average, pointing to further construction needs to meet rising demand.

10 Real Estate Insights Showing What's Next for Housing

Top 10 States with the Highest Number of Commercial Foreclosure in March 2024

4 Proptech Trends To Watch For

The Highest Paid Athlete In Various Sports

That's all, folks.

Cheers,

Vidit

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