Top 5 Metros for Student Housing Transactions

Property Returns Still Trail Inflation Rate link

• The property market is currently underperforming compared to the inflation rate. This trend mirrors the aftermath of the Great Recession, suggesting a prolonged period of lower returns for investors.

• Despite various economic recovery efforts, the property sector has not bounced back as quickly as expected. Investors might face dissatisfaction for at least another four quarters if this trend continues.

• The article highlights the challenges facing the property market. It draws parallels with past economic downturns, indicating a need for strategic adjustments in investment approaches.

Data suggests strong spring real estate market. link

• 2024 is expected to see a 15% increase in home sales over 2023, with home prices also rising. The year started stronger than 2023, showing clear signs of a recovering market despite the previous year's slowdown in Q3 due to high mortgage rates.

• Inventory is gradually increasing, with 499,000 single-family homes currently unsold, a slight decrease from last week but 6% more than last year. This trend indicates a growing number of sellers, contrasting with the previous year's limited supply.

• The regional disparity in inventory growth is notable, with increases in the South and Central US, but decreases in the Western and Northeast states. This uneven distribution could significantly impact the real estate market dynamics throughout 2024.

Top 5 Metros for Student Housing Transactions link

• The student housing market experienced a significant rebound in recent years, with record preleasing rates and rent growth. However, 2023 saw a slowdown in investment activity, largely due to high interest rates.

• Across the U.S., the average price per bed in student housing dropped from $76,095 in 2022 to $71,703 in 2023. A total of 66 properties were sold year-to-date through October, a decrease from 200 properties sold at the same point in 2022.

• The top five markets for student housing sales in 2023 were Atlanta, Tallahassee, Phoenix, Eugene, and Columbia. Atlanta led with a staggering $1.73 billion in sales, while Columbia was the most affordable market with an average price per bed of nearly $55,100.

State-to-State Migration Trends in 2022 link

• In 2022, the U.S. saw an increase in state-to-state migration, rising from 7.9 million in 2021 to 8.2 million. People moved for affordability and remote work opportunities, with Florida and Texas gaining the most migrants.

• Net migration was influenced by factors like population size, housing affordability, job opportunities, and building permits. States offering affordable housing options, like North Carolina and Arizona, saw positive net migrations.

• Employment opportunities alone weren't a strong enough pull for relocation. States with higher job creation, like California and New York, experienced more outbound migration, indicating a preference for affordable housing over job prospects.

Seniors Housing’s Supply, Development Falling Short link

• The construction of senior housing is lagging, with a significant shortfall expected in the coming years. NIC MAP Vision projects a need for 156,000 additional units by 2025 for those aged 80+, escalating to 806,000 units by 2030.

• This gap is due to a slowdown in construction starts and inadequate capital investment. The growing demand for senior housing is not being met, creating a looming crisis in accommodating the aging population.

• The demographic shift with the first Baby Boomers turning 80 in 2025 highlights the urgency of this issue. The increasing number of seniors will require more dedicated housing solutions, yet current development efforts are insufficient to meet this impending need.

Sun Belt Markets Poised To Lead Nation in Retail Rent link

• Sun Belt markets are expected to lead the nation in retail rent growth in 2024. This trend is driven by limited availability and strong consumption gains.

• The region's economic growth, coupled with an influx of new residents, is fueling demand for retail space. This demand is outpacing supply, leading to higher rents.

Where are renters moving? link

• The South, New England, and the Pacific Northwest are experiencing a surge in inbound migration. Atlas Van Lines data shows these regions have higher rates of people moving in than out, with Hawaii leading at 77% inbound moves in 2023, a significant shift from its historically balanced migration pattern.

• Maine, North Carolina, and New Hampshire are the top destinations for movers in the continental U.S., each with inbound rates of 60% or higher. Notably, New Hampshire jumped from 10th to 3rd place in 2023, while Maine and North Carolina have been consistently popular.