Aftermath of Helene

Happy Friday everyone and welcome to our new subscribers! This past week was quite wet for those of us in the Midwest, sending our best wishes to our southeast subscribers and their friends/families we hope you were able to stay safe.

This week’s newsletter is 758 words, a 3-minute read.

Mortgage Rates

Aftermath of Helene

This week Hurricane Helene ripped through the Gulf becoming the 7th hurricane this year to make landfall in the southeast. The death toll has totaled 215 so far with more than ½ of them coming from North Carolina where several feet of currents destroyed entire communities. 0.8% of inland homes impacted had flood insurance and 21% of homes in coastal counties had coverage. Helene is expected to be one of the costliest storms in history with estimated damages totaling up to $110 billion.

Despite all the environmental risk, The South gained 3.9 million residents since April 2020, with Texas and Florida hosting 10 of the 15 fastest-growing US cities despite their vulnerability to hurricanes. Rising insurance premiums have impacted property valuations in storm-prone cities like Jacksonville and Houston by 9.6% and 11%. Homeowners and landlords are struggling as insurance becomes harder to secure in high-risk areas like Florida and California.

According to Freddie Mac, in 2023, 23.3% of US households made disaster-proofing home improvements, up from 17.6% in 2022. Only 5% of homeowners increased their insurance coverage. Roughly 16% of people aged 16-44 explored relocation, predominantly those with lower incomes.

On a lighter note: US Jobs Report CRUSHED Expectations

The US labor market added 254,000 jobs in September blowing out the 150,000 anticipated number while the unemployment rate ticked lower, reflecting a stronger picture of the jobs market. Wages increased as well by 0.4% month over month, and 4% year over year. Going into today, analysts questioned whether data would reflect further cooling of the jobs market and thus another prompt rate cut by the FED. With these numbers, it looks like the FED will continue with their planned 25 bps cuts through the rest of the year.

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Newer Industrial Buildings take Priority

2 billion sqft of industrial space has been delivered since 2021. This supply has been soaked up by demand from tenants of older facilities looking to upgrade their space including higher clear ceilings, more power, and other amenities for modern distribution.

Buildings completions between 2023 and Q2 2024 have recorded 395 million sqft of positive net absorption since Q1 2023. Meanwhile, those built between 2000 and 2022 have seen 17 million sqft of negative net absorption. Buildings 25 years old or more have suffered the most.

As occupiers leave older facilities, investors should consider selling them to the growing pool of owner-occupiers, renovating them to meet modern standards, or converting them to other uses. Another option for well-capitalized investors is to hold these assets until market conditions for secondary and tertiary products improve. link

Boomers own 38% of America’s homes-and more than half of them never plan to sell

As many are familiar, the biggest wealth transfer of all time is upon us with Baby Boomers and the Silent Generation passing down $84 trillion dollars of wealth. Housing is included in this transfer and like the rest of the wealth, it looks like most of it will stay in the family.

Boomers comprise 21% of the population yet own 38% of the homes. However, 54% of boomer homeowners never plan to sell their homes, despite many able to profit over $100,000.

This reluctance further contributes to the housing supply issue persisting around the US. This persistent shortage has driven home prices to record highs (up 5% this month & marking an increase for the 14th consecutive month). This has compounded affordability issues for new buyers. In the coming years, it will be interesting to see if trends reverse or what inheriting families do with properties.

4 Hot Kitchen Trends

1. Statement Lighting

Lights, continue to be the crown jewel of the kitchen. Dramatic lighting can be used to draw the eye to an island or dining table.

2. Stone Slab Backsplashes

30% of designers called this the “hottest kitchen trend of the year”. They provide more than just aesthetics—they are easy to clean and durable.

3. Multifunctional Islands

Islands are taking on a greater role. Multifunctional islands may include a sink, cooktop, storage, and bar space. Some are even adding wine racks, a dishwasher, and extra storage.

4. Mixed Materials

Gold and chrome, or varying countertop material is in. Utilizing a blend of “classic and contemporary”. Black appliances are even being used to add a “touch of sophistication”

5 Tiresome Kitchen Trends

1. Gray tones

2. Subway tiles

3. Waterfall counters

4. Open concepts

5. Vintage features

That’s all for this week! Interesting times are to come with market volatility uptick thanks to Middle Eastern conflicts, jobs report signaling strength in labor markets, and housing is getting political. Make sure to subscribe to stay on top of all of it!

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The information provided in this newsletter is for informational and educational purposes only and does not constitute financial, investment, or real estate advice. The content is based on the opinions and research of the authors and may not reflect the most current market conditions or developments. The analysis of properties is done without consideration of each platform’s fees. Always conduct your own research and consult with a qualified financial advisor or real estate professional before making any investment decisions. The authors and publishers of this newsletter disclaim any responsibility for decisions made based on the information contained herein.