Trillion-dollar Climate risk

How the U.S. Dollar Has Performed, by President (1967-2025) and 12 more real estate insights

In partnership with

I recently read the 136-page PWC/Urban Land Institute Report on Emerging Trends in Real Estate and made a podcast out of it using Google LM.

What’s this world we are living in now?! 🙂 

Latest Rates

Loan Type

Rate

Daily Change

Wkly Change

Monthly Change

Yearly Change

52-Wk Low/High

30 Yr. Fixed

7.05%

+0.04%

+0.00%

-0.19%

+0.07%

6.11/7.52

15 Yr. Fixed

6.44%

+0.03%

-0.01%

-0.09%

+0.11%

5.54/6.91

30 Yr. FHA

6.40%

+0.02%

-0.06%

-0.15%

+0.14%

5.65/7.00

30 Yr. Jumbo

7.35%

+0.05%

+0.01%

-0.07%

+0.05%

6.37/7.68

7/6 SOFR ARM

6.85%

+0.07%

-0.01%

-0.25%

+0.30%

5.95/7.55

30 Yr. VA

6.43%

+0.03%

-0.05%

-0.14%

+0.14%

5.66/7.03

Macro Trends

Climate risk will take trillion-dollar bite out of America's real estate link

  • The U.S. real estate market is projected to lose over $1 trillion in value by 2055 due to climate migration and rising insurance costs. Some areas, like Tampa, FL, could see home prices drop by as much as 25%.

  • Risky growth areas, including major metros in Texas, are expected to grow 76% in population over the next 30 years despite high climate risks. In contrast, climate abandonment areas will lose 38% of their population as people relocate to safer zones.

  • Climate risk is hyperlocal, meaning even within the same metro, some neighborhoods will thrive while others decline. Dane County, WI, and Franklin County, OH, are highlighted as more resilient regions likely to attract future population growth.

Real Estate Trends

Renter affordability has improved — here’s what’s behind the trend link

  • Rent prices are dropping in some areas due to a pandemic-era construction boom that increased housing supply. More available units mean landlords must lower rents to stay competitive.

  • Renter incomes have risen, with the median income reaching $54,752 in 2024, up 5.3% from 2023 and 35.2% from 2019. However, renters still fall about $8,928 short of the income needed to afford rent comfortably.

  • Austin, Houston, Dallas, and Salt Lake City are among the most affordable metros due to high construction activity, while places like Providence, Los Angeles, and Miami remain expensive due to low supply. Markets with strong job opportunities continue to attract high earners, keeping rents elevated.

Millennials have ‘phantom wealth’ but may not feel as rich link

  • Millennials' net worth nearly quadrupled since 2019, rising from $3.94 trillion to $15.95 trillion, but much of it is tied up in real estate. This makes them feel financially stretched despite owning high-value assets.

  • Homeownership for millennials aged 35 to 44 grew to 62.3% in Q3 2024, up from 60.3% in 2019, with home prices soaring 44% in recent years. However, 60% of Americans still dip into emergency savings to cover daily expenses.

  • Millennials face rising costs for housing, child care, healthcare, and essentials, making them feel poorer despite asset growth. Wage growth has been slow, forcing many to rely on side hustles to maintain financial stability.

I post the most popular insights from the day on Instagram. If you like colorful visuals, follow along ↓

Instagram

New tariffs could raise home prices and sideline potential buyers link

  • Tariffs on building materials like softwood lumber from Canada and gypsum from Mexico could significantly raise home prices. About 70% of these materials used in U.S. home construction come from these two countries.

  • Home prices have already surged over 40% since the start of the pandemic, with a 3.8% annual increase in November 2024. The new tariffs could further squeeze first-time buyers already struggling with affordability.

  • If construction costs rise by $3 billion to $4 billion as expected, builders may slow projects, worsening the housing shortage. Smaller builders with tighter margins will be hit hardest, but even large firms will feel the impact.

Looming Tariff Threats Shake Up Industrial Activity link

  • Freight volumes surged in key ports, with Long Beach up 20% year-over-year, Los Angeles up nearly 19%, and Seattle more than 16%. Other major ports seeing strong activity include New York/New Jersey, Savannah, Oakland, Houston, Virginia, and Charleston.

  • E-commerce now accounts for 16.2% of total retail sales, up from 14.2% in Q2 2022. Amazon expanded aggressively in 2024, adding 39.2 million square feet of facilities, making it their third most active year since 2020.

  • Class A industrial vacancy jumped 730 basis points in two years, nearly doubling the overall vacancy rate. Mid-sized buildings are struggling with rising vacancies, while the smallest and largest spaces remain in high demand.

Something I found Interesting

This State Is Building ‘Lego Block’ Homes in 96 Hours To Help With Housing Gap link

  • Vermont is using factory-built modular homes to speed up construction, reducing build times from 9-13 months to just 96 hours. These homes are assembled in a 100,000-square-foot factory and then transported to the site, avoiding weather delays.

  • The state built only 2,000 homes in 2023, just a quarter of what is needed to maintain affordability. Factory-built homes could help meet demand, especially as labor shortages slow traditional construction.

  • The cheapest model costs $188 per square foot, significantly less than Montpelier’s median home price. Half of these homes are shipped to high-end markets like Cape Cod and Nantucket, showing broad appeal.

A word from our sponsor

Join us in simplifying moving.

Moving doesn’t have to be overwhelming. From narrowing down where to live to making it all happen, we simplify the journey every step of the way.

Read the Offering information carefully before investing. It contains details of the issuer’s business, risks, charges, expenses, and other information, which should be considered before investing. Obtain a Form C and Offering Memorandum at https://wefunder.com/lookyloo

Pro Member Only Content Below

Most of the insights below stem from extra research and include content from paid sources and special reports.

Is 2025 the Year to Invest in Seniors Housing?

(This content is restricted to Pro Members only. Upgrade)

U.S. Life Sciences Outlook 2025

(This content is restricted to Pro Members only. Upgrade)

New Trend Amongst Healthcare Tenants

(This content is restricted to Pro Members only. Upgrade)

Large Industrial Leasing Dominated by Big Box Deals

(This content is restricted to Pro Members only. Upgrade)

Top 10 Cities for Short-Term Rental Investments

(This content is restricted to Pro Members only. Upgrade)

List of Proptech Startups That Just Got Funded

(This content is restricted to Pro Members only. Upgrade)

Off Topic

How the U.S. Dollar Has Performed, by President (1967-2025)

Image

Unreal Real Estate

There is no aging in place here!

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

P.S - Read past newsletters here

Referral Milestones

Discount

Referrals Needed

3 MONTHS FREE on the Pro Plan

1

30% off FOREVER on the Pro Plan

5

50% off FOREVER on the Pro Plan

10

75% off FOREVER on the Pro Plan

15

100% off FOREVER on the Pro Plan

25

If you are finding value, please consider helping the newsletter by becoming a paying subscriber

A subscription gets you:

✓ More issues per week

✓ Special reports on new housing studies

✓ Exclusive insights that are usually tucked behind paywalls (which I cover the costs for)

✓ Curated Top 10 lists

✓ The latest updates on prop-tech funding rounds

Want to sponsor the newsletter? Details here

Reply

or to participate.