Weekly Housing Data, Key Trends in Healthcare Real Estate Market

Hey, If you have not received an email in a while, as a reminder you signed up on Zero Flux - A daily newsletter with 5-10 actionable real estate trends.

Unsubscribe below if you would like to stop receiving future emails

“You can easily judge a man's character by how he treats those who can do nothing for him.”

― Simon Sinek

Weekly Housing Trends —Data for Week Ending June 8, 2024 link

• Mortgage rates dipped below 7%, encouraging more sellers to list their homes, resulting in an 8% increase in new listings from the previous year. However, high prices and elevated rates still pose challenges for many potential buyers.

• Active home inventory rose by 36% compared to the same week last year, with the South driving much of this growth due to an influx of smaller, affordable homes. This provides buyers with more choices but indicates that supply is still catching up to pre-pandemic levels.

• Homes are spending two more days on the market compared to last year, indicating a slower sales pace. Despite this, homes are still selling faster than they did before the pandemic, showing some lingering market momentum.

More Than 3 in 5 Home Listings Are Now ‘Stale’ As Record-High Costs Dampen Demand link

• Over 61% of homes listed in May remained unsold for at least 30 days, a rise from 60% the previous year. High mortgage rates and soaring home prices are deterring buyers.

• Dallas saw the most significant increase in stale listings, with over 60% of homes unsold for 30+ days, up from 53%. Florida cities like Fort Lauderdale and Tampa also experienced similar trends.

• Seattle, Las Vegas, and San Jose showed the biggest drops in stale listings. This suggests localized demand shifts and market variability.

Key Takeaways from Macro Outlook Report From Cush and Wake

Economy
Slowing growth and a break in shelter inflation’s stickiness will pave the way for the Fed to pivot in the fall. 

Capital markets
Acceptance of higher-for-longer is permeating the market, leading to more price discovery and more optimism around activity moving forward.

Industrial
Even with rent growth decelerating, strong fundamentals and an ongoing adjustment to higher rent levels among existing leases will keep this sector favored in an income-focused era.

Multifamily
The supply wave gets the attention, but the strength of demand should be equally acknowledged, given that it is offsetting the impacts of development on vacancy, which is now nearing its peak.

Office
Still challenged by the adjustment to hybrid work, the office sector at large remains soft. But not all markets or product are created equal: the market is trifurcated and becoming more so.

Retail
The lack of supply is the story here for a sector that has a 40-year low vacancy rate, hovering at 5.4%. Store openings will exceed store closings this year helping keep the market anchored at tight levels.

Lodging
While pent-up demand for travel continues to buttress spending on lodging, cost effective and luxury options are likely to remain more insulated given inflation’s impact on middle- and lower-income households.

Alternatives
Secular demand drivers continue to favor most alternatives, especially those with residential underpinnings and data centers.

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

Amazon Commits $1.4B for Affordable Homes link

• Amazon's new $1.4 billion commitment aims to build 14,000 affordable homes in Seattle, Nashville, and Washington, D.C. This brings their total housing pledge to $3.6 billion.

• Since 2021, Amazon has provided $2.2 billion to create over 21,000 affordable homes, surpassing their original goal. Their efforts target families earning 30% to 80% of the area's median income.

• About 92% of Amazon-funded homes are near public transit, reducing transportation costs. Additionally, 41% of these homes have two or more bedrooms to accommodate families.

Homebuilders Aren’t Overbuilding, They’re Catching Up

Apartment List National Rent Report 

Key Trends in Healthcare Real Estate Market 

Multifamily Asking Rents Reach Highest Level Since May 2022 

Latest Proptech Funding Rounds

Mapped: The Income Needed to Live Comfortably in Every U.S. State

That's all, folks.

Cheers,

Vidit

P.S - Read past newsletters here