WEEKLY
Mortgage Rate (30-Year Fixed): 4.42% (as of 3/24)
MONTHLY
Existing Home Sales: 6.7% (January 2022)
New Residential Sales: 16.2% (January 2022)
Median Sales Price for New Houses Sold: $423,300 (January 2022)
Construction Spending: +1.3% MoM (January 2022)
New Residential Housing Starts: 1.6 million (January 2022)
New Residential Housing Completion: 1.2 million (January 2022)
QUARTERLY
Homeownership Rate: +65.5% (4Q21)
Rental Vacancy Rate: +5.6% (4Q21)
Sources: NAR, BLS, Federal Reserve Bank, MBA
Note: Rates listed are estimates and may not reflect actual rates depending on term, sponsor location, and other factors involved.
10. Unemployment claims drop to lowest in 52 years
Initial jobless claims in the U.S. dropped to 187,000 last week according to the Labor Department. This is the lowest level for initial claims in over half a century. In an interview by The Wall Street Journal, Oxford Economics opined that the current condition is a reflection of the country’s tight labor markets. Unemployment was down to only 6.3 million in February as the country continues to recover from the ongoing effects of the pandemic.
9. Ultra-luxury senior-housing projects seen as next huge bets
With rents soaring at $25,000, developers of senior housing projects that cater to the wealthier segment of baby boomers are cashing in on the trend. In a report by The Wall Street Journal, monthly rents come with meals, housekeeping, concierge assistance and assisted living. The upscale senior market has started to recover with 31 metro markets reporting a total of 81% occupancy after the pandemic forced many senior citizens to take a pause from moving into these facilities due to fears of being infected by the coronavirus.
8. Dallas-Fort Worth multifamily market tops national investments
Multifamily housing transactions in the Dallas-Fort Worth metro surged 33% in 2021, continuing six years of robust investments. According to real estate firm Northmarq Multifamily, a total of $47 billion closed transaction volumes were registered last year, which is higher than Manhattan’s. Analysts attribute the growth to more employment numbers that drove population expansion and eventually a huge drop in apartment vacancies. In addition, the metro continues to be an ideal site for industrial spaces such as warehouses and distribution centers for e-commerce brands.
7. NYC and San Francisco are the most expensive flexible office metros
Savills reports that New York and San Francisco topped the list for global flexible office rents this year. New York’s private office desk rents average $961 a month while San Francisco’s $950 average per month landed it in second place. The company reports that the high rents for flex office spaces have been driven by the demand for high quality amenities to lure workers away from work-from-home arrangements. London and Berlin also made the top 10 list with $803 and $800 average rent per month, respectively. The flex office market has performed better than traditional office properties during the pandemic.
6. Smaller, sub-markets to continue to benefit from exodus of workers
Smaller cities that have more affordable cost of living will continue to attract migrating workers within the year, according to Pay Services. However, this will bring a shift in housing trends as supply cannot meet increased demand due to supply chain issues and the continued rise in inflation. In its Forbes article, the company predicts that multifamily developers will improve their property services by offering additional perks to improve their competitive stance, with conveniences such as delivery storage lockers and automated rent delivery mechanisms.
5. Multifamily lending to reach record-high levels in 2022
The Mortgage Bankers Association (MBA) predicts that multifamily lending will rise to $493 billion in 2022 in terms of originations, according to the group during the 2022 Commercial/Multifamily Finance Convention and Expo. The MBA anticipates borrowing and lending to remain high next year, with a total value of $1.0 trillion of total commercial real estate lending and $474 billion in multifamily lending.
4. CRE leasing activity drops in February
The U.S. office market recovery slowed for the second consecutive month in February, according to real estate firm CBRE. The company’s tenants-in-the-market (TIM) index dropped by 18 points, reflecting a significant slowdown in leasing activities in 10 of 12 metros. Only Dallas-Fort Worth and San Francisco registered unchanged levels during the month.
3. Corcoran: Housing market presents opportunities for savvy investors
Real estate investor Barbara Corcoran has announced that the current housing market is “the best real estate investment opportunity” she has had in her lifetime. The reality TV celebrity explained in an interview with Yahoo Finance that the current environment offers market longevity, rise in average rents and low interest rates. Investors should expect higher ROI, since the pandemic has caused a boom in housing demand and a rise in prices.
2. Fed: Demand in cities with tight housing supply will continue
In his speech at the “Recent Fiscal and Monetary Policy: Implications for U.S. and Israeli Real Estate Markets” conference, Federal Reserve Governor Christopher J. Waller announced that the drive towards population boom in metros with already tight housing supply will persist in the coming years. Gov. Waller also added that regulatory supply constraints have started to ease in some areas, but this will not be enough to tame home building in high-demand metros. Shortage of workers, high building materials costs and other issues will also hold back construction activities.
1. Millennials to make up almost half of U.S. homebuyer population
The National Association of Realtors (NAR) revealed in its recent report that millennials now account for 43% of the home buying population in the U.S. Older millennials, in particular, have saved enough during the past two years that the pandemic has impacted the economy, which is enough for a downpayment for a new home. However, with the rise in home prices at 30% YoY and low supply of properties, the competition among buyers has intensified in the past months. This resulted in baby boomers pricing millennials out of the competition, especially for all-cash buyers.
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