U.S. Foreclosure Activity Shoots up by 42 Percent, Multifamily Distress is now showing up in some regions and more

U.S. Foreclosure Activity Shoots up by 42 Percent in First Half of 2023 From Last Year link

• Surge in Foreclosures: Foreclosure filings in the U.S. saw a dramatic 42% increase in the first half of 2023 compared to the same period last year.

• June Dip: Despite the overall increase, June 2023 experienced a 14% decrease in foreclosure activity, indicating a potential slowdown.

• State Specifics: Illinois, Ohio, and South Carolina were the states with the highest foreclosure rates, with Illinois leading at one in every 572 housing units with a foreclosure filing.

• Not a Repeat of the Great Recession: Despite the surge, experts stress that this is not a repeat of the Great Recession. Many homeowners unable to pay their mortgages are choosing to sell their homes, often pocketing a profit, rather than undergo a foreclosure.

Top reasons for multifamily Insurance claims link

• Weather Woes: Rising insurance costs for apartment owners are largely driven by the increased frequency and severity of weather-related issues such as hurricanes, flooding, and wildfires.

• Surge in Costs: Property insurance costs have surged by an average of 26% in the past year, with some reporting increases as high as 120% year over year.

• Damage Dilemma: The top types of claims filed by apartment firms in the past year were water damage (70% of respondents), followed by liability claims, and fire damage (52.3% of respondents).

Hybrid work is the new normal, as companies rethink work habits and office and retail space link

• Shifting Spaces: By 2030, demand for office space could be 20% lower than 2019 levels, driven by the rise of remote and hybrid work. Companies are now rethinking their real estate strategies to align with new work habits.

• Residential Ripples: Post-March 2020, 20% of people who moved did so because they could work from home more frequently. Many are moving out of expensive, office-dense areas into cheaper, mixed-use neighborhoods.

• Retail Rethink: With remote and hybrid workers less likely to spend near the office, retailers need to rethink their models. The demand for retail floorspace in 2030 is expected to be lower than it was in 2019.

The Intersection of Healthcare and Housing: The Rise of Integrated Communities link

• Innovative Integration: The concept of integrated communities, blending healthcare and housing, is gaining traction. These communities are based on the idea of health hubs, providing consumer-centric delivery of products, care, wellness, and well-being.

• Healthcare-Housing Nexus: The relationship between healthcare and housing is deeply intertwined. Stable housing is a social determinant of health, and lack of access to safe and affordable housing can lead to numerous health challenges. Integrated communities embrace this symbiotic relationship.

• Future Directions: Despite challenges such as funding and policy barriers, the future of integrated communities holds immense potential. Technological advancements like telehealth and digital healthcare platforms can enhance the delivery of healthcare services within these communities. Incorporating sustainability and environmental design principles can create healthier living environments.

Construction's labor shortage compounds as workers age out link

• Aging Crisis: The construction industry is facing a labor shortage as older workers retire, with 41% of the current workforce expected to retire by 2031.

• Recruitment Challenge: Despite efforts, the industry struggles to attract younger workers, with only 9% of construction workers being aged 24 or younger.

• Diversity Deficit: The industry is male-dominated with women making up only 10.9% of the construction workforce, indicating a potential untapped labor pool.

• Future Focus: The industry is expected to continue its tech-driven transformation, with a 56% increase in the use of drones and a 50% increase in the use of 3D printing over the next three years.

Housing Market Update: U.S. Home Prices Rise For the First Time in Nearly Five Months link

• Mortgage Impact: Elevated mortgage rates have reduced a buyer's purchasing power by $30,000 over the last five months for those on a $3,000 monthly housing budget.

• Price Surge: The median U.S. home-sale price rose 1.5% from a year earlier during the four weeks ending July 9, marking the first increase in nearly five months.

• Inventory Crunch: New listings are down 27% year over year, the biggest drop since the start of the pandemic, and the total number of homes on the market is down 14%, the largest drop since March 2022.

Hotels: Occupancy Rate Down 2.3% Year-over-year link

• Dip in Demand: Hotel occupancy rates have seen a 2.3% decrease compared to last year, indicating a potential slowdown in the industry.

• Regional Variations: The decline is not uniform across all regions, with some areas experiencing sharper drops than others.

• Data-Driven Insights: The report uses comprehensive data from STR, providing a reliable snapshot of the current state of the hotel industry.

Construction Claims - July 2023 data link

• Lumber Lowdown: The downward trend of lumber-based components continues, with framing and rough carpentry down by -38.3% compared to July 2022.

• Siding Slides: Siding material decreased an average of -1.8% across all regions over the past month. Since July 2022, siding has decreased an average -6.7% across all regions.

• Labor Lift: Labor rates compared to July 2022 are higher across all regions and all trades. The Northwest and West Central regions stand out for higher-than-average labor rates for drywall, plaster, insulation, and water mitigation.

Fewer People Moving wont result in less remodeling projects link

• Steady Pace: Despite a decrease in mobility, the remodeling market remains robust with a steady pace of growth.

• Home Sweet Home: Homeowners are choosing to invest in their current homes instead of moving, fueling the remodeling industry.

• Data-Driven: The remodeling market is expected to grow by 4.8% in 2023, highlighting the industry's resilience and potential.

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