Category: Real Estate
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San Francisco’s Rent Control Expansion: A Game Changer for Real Estate Investors and Developers?
San Francisco is on the brink of a significant shift in its housing market. The city is poised to extend rent control to thousands more renters, contingent on the outcome of California’s Proposition 33 this November. Sweeping Changes on the Horizon Board of Supervisors President Aaron Peskin has introduced an ordinance to expand rent control…
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Multifamily Market Awaits Impact of September Rate Cut
As we move into September, the multifamily market is on the edge of its seat, eagerly anticipating the Federal Reserve’s decision to cut interest rates. August saw a steady performance in the sector, but the potential rate cut brings a mix of hope and caution. Key Highlights: Regional Insights: Looking Ahead:The upcoming rate cut decision…
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Rising Wages and Stable Rents Boost Apartment Affordability
U.S. apartment affordability is on the rise as stable rents and increased wage growth create a more favorable rental market. In August, U.S. apartment rents saw a modest 0.9% year-over-year increase, the largest in 18 months, while a surge in multifamily construction has kept rents relatively stable. Key Takeaways By the Numbers According to a Redfin…
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Fed Rate Indicator Signals Potential Cuts Amid Recession Worries
The gap between the Fed funds rate and the 2-year Treasury yield suggests a recession could be on the horizon. Warning Signs Barron’s recently highlighted a significant difference between the effective federal funds rate (EFFR) and the 2-year Treasury yield as a new metric signaling potential trouble. As of September 9, 2024, the EFFR stands…
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Mid-Priced Apartment Demand Soars, Surpassing 2023 Levels
Demand for mid-priced, three-star-rated apartments has surged in 2024, with absorption already exceeding last year’s total. According to CoStar, demand for mid-priced, 3-star apartments shot up 86% year-over-year in Q1 2024 and surged 126% from Q2 2023. Key Metrics: Regional Highlights: Sun Belt markets dominated the top 15, while Northeast regions like NYC and Philadelphia also…
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High-Supply Multifamily Markets Show Signs of Stabilization as Demand Absorbs New Units
High-supply multifamily markets are beginning to stabilize as renter demand absorbs new units, leading to improved occupancy rates. In Q2, nearly 70% of inventory in these markets experienced negative rent growth. However, this trend is expected to reverse as demand outpaces new supply. Multifamily property values appear to have stabilized, with capitalization rates expected to…
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Are Co-Warehousing Solutions a Game-Changer for Industrial Real Estate?
The rise of co-warehousing solutions is reshaping the industrial real estate landscape, offering a compelling alternative for the growing number of small businesses and users with short-term needs. With over 5.5 million new business applications filed in 2023 alone, according to Census data, this niche market is gaining significant traction. Small businesses, which contribute nearly…
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The Return-to-Office Mandate: What to Expect in 2025
As we approach 2025, a significant shift is on the horizon for the American workforce. Despite some resistance, a majority of companies are gearing up to enforce return-to-office (RTO) mandates. According to a recent Resume.Builder survey featured by BenefitsPro.com, an overwhelming 9 in 10 companies plan to implement these mandates next year. This survey, which…
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The Job Market Reaches a Tipping Point as the Hiring Boom Takes a Breather
After a prolonged post-pandemic hiring frenzy, the U.S. labor market is showing signs of cooling. In July, employers added just 114,000 new jobs, significantly fewer than economists had anticipated. The unemployment rate also spiked to 4.3%, the highest level since 2021. Adding to the concerns, the Labor Department recently revised its data, revealing that the…
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CoreLogic: Homes Sales Are Down, So Why No Recession?
In a surprising twist, the historical link between housing downturns and recessions appears to be weakening. Despite a significant decline in home sales and residential investment in 2023, the broader U.S. economy remains resilient. Unemployment rates are low, and GDP growth is strong, defying traditional economic predictions. Decoupling Housing from the Economy Several factors may…
Daniel Kaufman Real Estate 