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The U.S. housing market continues to evolve, and 2024 marked a significant shift in construction trends. While total housing starts surpassed 1.37 million for the 11th consecutive year, developers are increasingly focusing on multifamily and build-to-rent (BTR) properties. This shift could present major opportunities for investors and developers looking to capitalize on changing demand. According to data from Colliers, HUD, Zillow, Freddie Mac, and Green Street, the supply-demand balance is shifting, with implications for both rental and for-sale housing markets. Key Takeaways for Developers and Investors: • Multifamily completions hit 588K units in 2024—the highest since 1974—yet multifamily starts dropped 36% from their 2022 peak. • Single-family home starts rose 6% year-over-year (YoY), exceeding 1 million units, but this could contribute to rising unsold inventory as affordability remains a challenge. • The U.S. housing supply gap is estimated to be between 3.4M and 3.7M units, kee...

For decades, America’s wealthiest individuals gravitated toward traditional power centers like New York City and Los Angeles. But a new trend is emerging—high-net-worth buyers are migrating to less conventional markets, reshaping the landscape of luxury real estate. According to the USA Wealth Report 2024 by Henley & Partners, these five cities have experienced the fastest millionaire growth over the past decade. For developers and investors, understanding the driving forces behind these shifts presents lucrative opportunities. 1. Austin, TX: The New Silicon Hills • Millionaire Growth (2013-2023): 110% • Luxury Market Entry Point: $2.1M Austin has transitioned from an artsy cultural hub into a major tech powerhouse. With corporate giants like Tesla, Oracle, Chevron, and Hewlett Packard Enterprise relocating, the influx of high-income professionals has fueled demand for luxury homes. Realtor.com® recently moved its headquarters from California to Austin, further solidifying the city...

With economic uncertainty looming, real estate developers and investors must prepare for potential turbulence ahead. Recent warnings from economists, including UC Berkeley professor Jesse Rothstein, suggest that Elon Musk’s aggressive federal budget cuts could trigger a deep recession one that may impact housing, construction, and investment landscapes significantly. Why Experts Are Sounding the Alarm Rothstein, a former Department of Labor economist, predicts that the March jobs report (due April 4) will reveal historic job losses, comparable only to the 2008-09 financial crisis and the 2020 pandemic recession. Key Factors Driving the Economic Slowdown: Massive Government Layoffs: Hundreds of thousands of federal and contract workers could lose their jobs. Halting of Federal Grant Funding: Infrastructure, energy, and semiconductor projects funded under Biden-era policies are now stalled or canceled, impacting private-sector contractors, suppliers, and local businesses. Hiring Freezes ...

The U.S. real estate market is facing a new challenge, rising construction costs due to steel and aluminum tariffs. Based on 2024 import data, the estimated cost of these new tariffs amounts to $11.4 billion, with $7.6 billion hitting Trump-backing states and $3.8 billion affecting Harris-backing states. Whether you’re a developer planning a multifamily project or an investor analyzing market trends, these tariffs could significantly impact your bottom line. What This Means for Developers Steel and aluminum are essential materials in real estate construction, from structural framing to HVAC systems. The increased cost of these materials will likely lead to: Higher Development Costs Rising steel and aluminum prices will push up construction costs, making new builds more expensive and reducing margins. Potential Project Delays Contractors and suppliers may struggle with fluctuating costs, causing delays in procurement and completion timelines. Increased Rents and Property Prices To offs...

For real estate developers and investors looking for their next great opportunity, Shearon Farms is a project worth paying attention to. Located in Wake Forest, NC, this premier mixed-use development offers a unique blend of multifamily, retail, and commercial spaces, creating a dynamic investment with long-term growth potential. Why Shearon Farms Stands Out With real estate demand in the Raleigh-Durham area booming, Shearon Farms presents a strategic opportunity for developers and investors looking to capitalize on one of the fastest-growing regions in the country. Here’s what makes this project particularly compelling: Prime Location: Situated in Wake Forest, NC, just minutes from Raleigh, this development benefits from strong population growth, economic expansion, and increasing demand for housing and commercial space. Mixed-Use Design: The project features a well-balanced mix of multifamily residential units, retail space, and commercial opportunities, creating a vibrant, self-sust...

The CBRE Q4 2024 National Multifamily Report is out, and the absorption data is nothing short of historic. Multifamily demand is not only surging but it Is outpacing supply in ways we have never seen before. For developers and investors, this presents both opportunities and challenges in navigating a rapidly evolving landscape. Here are six key takeaways from the report that highlight just how unprecedented this market shift is: 1. Q4 2024 Had Record-Breaking Absorption Absorption in Q4 2024 was the highest of any fourth quarter on record 12 times higher than the pre-pandemic Q4 average. This signals a strong resurgence in renter demand, defying seasonal trends that typically show a slowdown in the last quarter of the year. 2. Demand Outpaced Supply by 18% Over the full year, multifamily demand exceeded the 451,000 units added to the market by 18%. This level of demand was more than double the absorption seen in 2023, demonstrating the sustained appetite for rental housing. 3. Every Si...

The office-to-residential conversion boom is officially here. With record-high office vacancies, housing shortages, and new incentives, conversions now account for 42% of all adaptive reuse projects, nearly tripling in just three years. But while the pipeline has surged to 71,000 units, the reality is that many of these projects face significant barriers to completion from high construction costs to zoning roadblocks and slow approvals. For real estate developers and investors, the key question isn’t just where the opportunities exist, but which projects will actually get built and how to position yourself for success in this growing sector. Where the Biggest Office-to-Resi Opportunities Are New York City (8,310 units planned) State and local tax incentives are fueling a wave of conversions, with major players like SL Green and GFP Real Estate leading acquisitions. Washington, D.C. (6,533 units) The city’s 20-year tax abatement under the Housing in Downtown initiative is driving develo...