Where Zillow Shoppers Are Searching

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Market expecting consumer spending to slow down link

• The S&P 500 consumer discretionary index has dropped sharply in recent weeks, signaling investor concerns over big-ticket spending. Items like cars, appliances, and electronics are expected to see weaker demand ahead.

• There's a growing gap between consumer discretionary and consumer staples stocks, showing that essentials are holding up while optional purchases are taking a hit. This divergence reflects broader worries about the durability of consumer spending.

• Investors are bracing for a slowdown as elevated rates and persistent inflation pressure household budgets. If the trend holds, it could drag down sectors tied to retail, travel, and durable goods.

Tariff fears are raising construction costs by up to 20% link

• Contractors are padding bids by as much as 20% due to fear of tariffs on materials from Canada, Mexico, and China. Related Group is seeing this across seven of its active development projects.

• Rising material costs could add $9,200 to a typical home, worsening housing affordability already strained by high mortgage rates. Luxury markets in Miami remain strong, but middle-market buyers are pulling back due to uncertainty.

• Immigration policy fears are also causing some foreign buyers, especially from Canada and Latin America, to back out of condo deals. One Related project lost seven or eight buyers due to tariff and visa concerns.

Weekly pending home sales are finally above last year link

• Pending home sales reached nearly 69,000 this week, up 2.3% from the same week in 2024. It’s the first time in 2025 that weekly sales have exceeded last year’s numbers.

• Inventory climbed to 668,000 unsold single-family homes, 30% higher than last year. New listings rose 15.5% year-over-year, signaling more sellers are entering the market than buyers.

• Median home prices are up just 1% year-over-year, with five states already showing declines including Texas, Georgia, and Washington. Price cuts are rising, now at 34.3% of listings, suggesting prices may fall even if sales rise.

Analysis reveals mixed CRE price recovery amid Fed rate cuts link

• The EW index rose 0.76% and VW index 1.24% in Q4 2024, but both remain below 2022 levels, with VW still down 10.74%. The Fed’s 100 basis points of rate cuts in late 2024 are starting to support recovery, though investor caution remains.

• Multifamily showed signs of strength with quarter-over-quarter price gains of 0.95% (EW) and 1.76% (VW), supported by rising rents and fewer deliveries in 2025. Freddie Mac projects 2.2% rent growth this year, up from just 0.3% last year.

• Office values rose slightly but are still down over 20% from 2022 highs, with Class A assets faring better than Class B and C. Lodging dropped 1.42% in Q4 and 5.94% year-over-year, while industrial posted modest gains, signaling sector-specific recoveries.

The housing market is ‘failing older adults,’ Urban Institute says link

• The number of senior households spending over half their income on housing nearly doubled from 5.2 million to 11.7 million over the past 20 years. By 2016, over 16% of older households were considered cost-burdened, up from 11.5% in 2000.

• Costs like insurance, utilities, and property taxes are rising sharply, especially for seniors over 75 and renters, who face the greatest affordability pressure. Senior living communities have also become more expensive due to rising premiums.

• The report suggests solutions like property tax deferral, Section 8 expansion, Medicaid housing waivers, and subsidized insurance. But limited housing supply and accessibility challenges make moving difficult for many older Americans.

SFR investors scaled back home buying in 2024 link

• The top 10 SFR buyers in 2024 purchased 80% fewer homes compared to 2021, as institutional acquisitions dropped sharply. Opendoor led the market with nearly 12,000 purchases, doubling New Western’s total.

• Short-term operators like iBuyers and wholesalers dominated the top ranks, while traditional SFR funds like Invitation Homes and American Homes 4 Rent bought fewer homes and even sold off some assets. Invitation Homes, for example, sold 1,575 homes in 2024.

• Atlanta saw the most investor activity, with Texas and Florida close behind. Truehold focused on St. Louis and Oklahoma City, while Wedgewood operated in Southern California and made the top 10 buyer list again.

Manhattan commuter submarkets add massive apartment supply link

• Brooklyn led the nation in new apartment deliveries with 35,890 units added over the past 10 years, increasing inventory by 7.9%. Queens followed with 22,960 new units, boosting supply by 8.8%.

• Jersey City saw a 52.2% increase in apartment stock, adding 27,800 units and offering rents around $3,700—over $1,500 cheaper than Manhattan’s lowest submarket. PATH transit access makes Jersey City a competitive alternative.

• Center City Philadelphia delivered nearly 17,400 units in the past decade, also increasing supply by 52.2%. Rent savings versus Manhattan range from $2,600 to $3,600 per month despite the longer commute.

Ohana

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Where Zillow Shoppers Are Searching

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Link to the listing

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Vidit

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