Which states are booming or cooling?

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Average property tax amount on homes up 2.7 percent across U.S. link

• The average property tax bill on U.S. single-family homes rose to $4,172 in 2024, a 2.7% increase from the previous year. Home values also increased by 4.8% to an average of $486,456, while the effective tax rate slightly dipped to 0.86%.

• Illinois had the highest effective tax rate at 1.87%, followed by New Jersey and Connecticut. Metro areas like Rockford, IL and Trenton, NJ had effective rates near or above 1.88%, while places like Honolulu, HI and Knoxville, TN remained under 0.35%.

• New Jersey topped the list for the highest average tax bill at $10,135, nearly 10 times more than West Virginia's $1,027. Among large counties, Bastrop County, TX had the highest average bill at $28,297, followed by Marin County, CA at $15,881.

Radical reinvention link

• Downtown office vacancy rates hit 19.5% nationally by end of 2024, nearly double the 2019 rate. Some major city centers are seeing mid-30% vacancy rates, forcing cities to rethink their core business districts.

• Cities like New York’s Financial District show that mixed-use transformations through zoning reforms, transit investments and public space improvements can revive struggling CBDs. The shift now demands housing, schools, culture and walkability—not just office towers.

• Primary markets still have unmatched value due to legacy infrastructure, deep labor pools and cultural institutions. This gives cities like New York, Chicago, and San Francisco a foundation to pivot from office-heavy hubs to vibrant, all-day neighborhoods.

Apartment construction slows, demand rises, and tariffs loom link

• Apartment rents are stabilizing, but tariffs could push them higher by increasing construction costs and reducing new supply. The U.S. plans to raise tariffs on Canadian softwood lumber to 34.45%, up from 14.4%.

• National median rent in January 2025 was $1,610, down 1.1% year-over-year, but markets like Louisville, Cleveland, and Chicago saw sharp annual rent increases of 12.4%, 8.6%, and 7.4% respectively.

• Construction delays from higher material costs may benefit landlords as demand catches up, especially with homeownership becoming harder for average households. Tariffs could raise commercial project costs by 3% to 5%, discouraging new builds.

Industrial absorption plunges to near 10-year low in Central Valley link

• Net absorption in California’s Central Valley dropped to minus 1 million square feet in Q1 2025, a sharp reversal from nearly 3 million positive in Q4 2024. This was only the second quarter of negative absorption in the region since 2015.

• Stockton, the region’s largest submarket, recorded a net loss of 374,669 square feet, while Tracy was the only area with meaningful positive absorption at 174,000 square feet. The total vacancy rate rose to 8.2% and available sublease space reached 2.6 million square feet.

• Leasing volume hit 3 million square feet in Q1, with 89% of activity driven by renewals. A 900,000 square foot Walmart facility in Stockton and a $100 million Home Depot project are expected to boost future absorption.

March home sales drop to their slowest pace since 2009 link

• Sales of previously owned homes fell 5.9% from February to March, hitting 4.02 million units, the slowest pace for March since 2009. The West saw the sharpest monthly decline at over 9%, but Rocky Mountain states posted year-over-year gains due to strong job growth.

• Inventory rose nearly 20% year-over-year to 1.33 million units, yet it still represents just a 4-month supply. A 6-month supply is considered a balanced market between buyers and sellers.

• The median home price in March was $403,700, up 2.7% from last year but the smallest annual gain since August. Contract cancellations and buyer hesitation are expected to rise further as stock market volatility and consumer anxiety grow.

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U.S. housing prices: which states are booming or cooling?

• Connecticut, New Jersey, and Wyoming saw the fastest home price growth at 8.3% from Q4 2023 to Q4 2024. Vermont and Rhode Island followed close behind, with growth driven by low inventory and higher household incomes.

• Mississippi was the only state to see a decline in home prices during this period. Flat population growth and rising inventory contributed to the cooling market.

• In nearly all states, home prices grew faster than real GDP (2.5%) and inflation (2.9%). This shows continued housing demand despite high mortgage rates.

Comparing commercial real estate credit spreads: COVID-19 vs. the 2025 tariff war

Top 10 housing markets with biggest quarterly increases in profit margins in Q1 2025

Affordability and homebuilding: state-by-state report cards

The 5 best metro areas to buy — and sell — a home this spring

The spring 2025 Wall Street Journal housing market ranking

Proptech Startups That Just Got Funded

Ranked: all the things people use AI for in 2025 link

• The top three AI uses in 2025 are therapy and companionship, life organization, and finding purpose. This shows AI is being used more to manage emotions and personal life rather than for just information gathering.

• Search-related tasks dropped by 10 spots compared to 2024, as AI is now used more for learning support than basic lookup. Tools like Gemini integrating into Google Search could be a reason for this shift.

• Content creation, coding assistance, and creative tasks like generating ideas and enhancing learning still rank high. Mental health experts warn that while AI can teach mindfulness, over-reliance could deepen loneliness issues.

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