Top 5 states Americans are fleeing

-

New here? Join the newsletter (it's free).

The economy is re-accelerating link

• Employment and retail data exceeded expectations, with the Atlanta Fed's GDP estimate reaching 2.7%. This highlights stronger-than-anticipated economic momentum despite restrictive monetary policy narratives.

• Key indicators such as same-store retail sales and ISM Services' Prices Paid index have shown significant upward trends, reinforcing the case for economic strength. A 40% probability is now projected for a Fed rate hike in 2025.

• Weekly economic indicators in major states like New York, California, and Texas suggest continued economic growth. Mobility and transaction data further underscore the resilience in consumer and business activities.

Covid-era home equity spike drove $40k jump in median net worth link

• Median U.S. household net worth increased by $40,000 between 2019 and 2022, primarily due to a $47,900 rise in median home equity. This growth was driven by higher house prices during the Covid-19 pandemic.

• Asian households experienced the largest equity gains, with median values climbing from $265,643 to $390,000, especially in the West and Northeast regions. In contrast, Black households saw median equity rise from $94,707 to $145,000.

• Homeowners had a median wealth of $406,000 compared to $156,700 for renters when home equity was excluded. Home equity remains the largest contributor to wealth disparities, surpassing other assets like financial accounts.

Apartment rent growth dipped slightly to close 2024 link

• National rents dropped 0.6% in December, ending the year at $1,373, a 4.8% decline from the August 2022 peak. This marks the second consecutive year of rent decreases and sharper-than-usual seasonal discounts.

• Vacancy rates rose to 6.8%, the highest since the pandemic began, driven by record apartment completions in 2024 and nearly 800,000 units in the pipeline. Sun Belt metros like Austin (-7.4%), Raleigh (-4.1%), and Jacksonville (-3%) saw the steepest declines.

• Midwest and Northeast cities like Cleveland (+5.7%), Grand Rapids, and Detroit posted strong rent growth. The average time for vacant apartments to lease reached 36 days, the longest since 2019, with Austin struggling at 43 days.

The top 5 states Americans fled in droves in 2024 link

• Louisiana faced the highest outbound moves due to job scarcity, with unemployment rising to 4.3% in November, slightly above the national average. It also ranked as the fourth-worst state for life expectancy, prompting many to leave.

• California and New York saw relocations driven by high living costs, with California's median home price at $1,094,000 and New York's at $749,000. Childcare in Los Angeles often costs as much as a mortgage, forcing families to move.

• Illinois struggled with high taxes, consuming 13% of a median family’s income, making it the least tax-friendly state. The combination of overspending and extreme taxation is driving residents away.

Consumer shifts are poised to shape retail in 2025 link

• Despite economic concerns, consumers prioritized spending on "essential non-essentials" like gym memberships and wellness products. They also sought specialty items and legacy brands that offered quality or value without exceeding their budgets.

• Shoppers valued speed and convenience but were willing to travel for high-quality or unique finds. This balance suggests that retailers blending convenience with exclusivity could gain a competitive edge.

• Retailers focusing on adapting store formats to local markets and offering innovative value-driven options may stay ahead. Discount retailing remains significant as shoppers look for both affordability and unique experiences.

Florida homeowners get new ‘affordable’ insurance options link

• A new insurance program in Florida is limited to newly built homes, excluding existing homeowners from its benefits. The average Florida homeowner currently pays over $4,000 annually for insurance, compared to the national average of $2,300.

• Frequent storms, including 2024's Hurricane Helene, caused $48 billion in damages and drove over 30 insurance companies out of the state. This has led to Florida being dubbed an "insurance desert" with limited coverage options.

• Security First Insurance and Embark MGA’s new HO5 policy includes streamlined claim processes and broader coverage than standard policies. Insurance quotes will be pre-integrated into the mortgage qualification process for new homes.

Top-10 concerns and trends for hoteliers in 2025 

These kinds of stores are leading retail market

Multiple factors support robust multifamily absorption forecast

This asset class tops CRE investment picks for 2025 per the experts

Surprising Illinois city becomes the hottest housing market for the first time

List of Proptech Startups That Just Got Funded

Charted: The U.S. Dollar Against Major Currencies in 2024 link

As off the grid as you can get!

Link to the listing

That's all folks. Let me know what you think of the email. Quite a lot went into it. If these emails aren't for you anymore, you can unsubscribe here.

Cheers,

Vidit

Instagram

P.S - Read past newsletters here