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Mortgage demand jumps nearly 10% to start the year, even as interest rates tick up again link

• Mortgage application volume surged by 9.9% last week, despite a slight increase in interest rates. The average rate for 30-year fixed-rate mortgages rose to 6.81% from 6.76%.

• Refinancing applications saw a significant jump of 19% from the previous week and were 30% higher than the same period last year. This indicates a renewed interest in refinancing among homeowners.

• Home purchase applications also increased by 6% for the week, although they were still 16% lower than the same week a year ago. This reflects ongoing challenges like limited supply and high home prices.

U.S. Data Center Demand Will Double by 2030 link

• The U.S. data center industry is set to undergo a massive expansion, doubling in size by 2030. This growth is driven by the increasing demand for artificial intelligence, necessitating a significant increase in data center capacity.

• In 2022, the total capacity of U.S. data centers was 17 gigawatts. By 2030, this figure is expected to soar to 35 gigawatts, as reported by a new U.S. Data Center Market report from Newmark.

• The rapid expansion of data centers reflects the growing reliance on digital technologies and the need for robust infrastructure to support AI and other advanced computing needs. This trend underscores the critical role of data centers in the digital economy and the importance of scaling infrastructure to meet future demands.

Class B Apartments Outperforming All Categories link

• In 2023, rent growth for 3-star (Class B) properties rose by 1.4%, surpassing the performance of both higher (4- and 5-star) and lower (1- and 2-star) rated properties. This data is highlighted in Apartments.com's Q4 2023 Multifamily Rent Report.

• Class B apartments, typically garden-style, are gaining traction due to improved consumer confidence, lower inflation, and the absence of a recession. These factors are collectively fueling the demand for such assets in the real estate market.

• The trend indicates a shift in the real estate market, where mid-tier properties are becoming increasingly attractive to investors and renters alike. This shift could reshape investment strategies and rental market dynamics in the coming years.

Where the Top Rental Markets Will Be This Year link

• Atlanta leads the rental market, according to RentCafe's report. The city has seen the highest rental activity on their site in the past year and is expected to continue this trend in 2024.

• The Midwest region shows strong rental market performance. Kansas City and Cincinnati follow Atlanta in RentCafe’s annual top 30 list, indicating a growing interest in Midwest cities among renters.

• Other notable cities in the rental market include Arlington and Orlando. These cities rank fourth and fifth respectively, showcasing their emerging status as popular rental destinations.

Small Markets with Most Population Growth of Young Adults link

• From 2021 to 2022, the 20-34-year-old population in the U.S. grew by nearly 700,000, a 1% increase. This age group is crucial for apartment rental markets.

• Small markets experienced a surge in young adult population growth, exceeding the national average. For example, Lakeland, Florida, saw a 5.5% increase, adding 7,500 young adults.

• University towns like Provo-Orem, Utah, and Boise, Idaho, also witnessed significant growth. This trend is attributed to the presence of major state universities, which sustain a steady influx of young adults in the rental market.