2025 Mid-Year Housing Review

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Nearly 1 in 5 homes listed in May had a price cut link

• Nearly 1 in 5 homes listed in May had a price cut—19.1% overall—mainly in the South and West, signaling softening demand or overpricing in key housing markets.

• The private credit market has exploded from $46 billion in 2000 to roughly $1 trillion by 2023, raising quiet concerns about financial stability despite industry reassurances.

• The Fed ended 2024 with over $1 trillion in unrealized losses on its balance sheet, a staggering figure that could quietly weigh on future policy decisions.

Concessions surge in 2025—1 in 4 apartments now offers free rent link

• Nearly 25% of units in some metros are being advertised with concessions, and the average discount is now around one month of free rent. This is no longer limited to luxury Class A but includes B and C properties too.

• In most major U.S. markets, rent discounts now average 4–6 weeks, signaling a major shift in leasing norms. These incentives, once rare, are becoming the default to keep lease-ups moving.

• In 82% of tracked markets, effective rents are growing more slowly than advertised asking rents due to widespread concessions. This gap means investors need to focus on actual rent roll, not just what’s posted online.

2025 Mid-Year Housing Market Review link

• Foreclosure activity is climbing again, with completed foreclosures (REOs) and new foreclosure starts both showing notable increases—an early warning signal for distressed assets returning to the market.

• Inventory levels have returned to pre-pandemic norms, which could cool price growth in many metros as supply and demand start to rebalance.

• Homeowners are holding onto their properties longer, while refinancing volumes have dropped sharply, suggesting tighter liquidity and a slowdown in equity tapping behavior.

Multi-Generational Home Buying Hits a Record High link

• A record 17% of homebuyers are now purchasing homes for multi-generational living, according to NAR—up sharply as affordability becomes the main driver.

• In 2024, 36% of multi-gen buyers cited "cost savings" as their primary reason for buying together, more than double the rate in 2015 (15%).

• Nearly 28% of all homebuyers say they plan to buy a multi-gen home, suggesting the trend is gaining serious traction as a workaround to high prices and mortgage rates.

Private buyers now account for 30% of global office investment  link

• Private buyers now account for 30% of global office investment volume, with LA ranking among the top four global destinations for this capital surge. Suburban markets with strong demographics are seeing rising demand from these investors.

• The Agoura Hills Business Park sale reflects this trend—116,280 square feet traded hands, with 66% occupancy and recent renovations boosting appeal. Tenants include biotech firm A2 Biotherapeutics.

• Strategic suburban bets are gaining momentum as investors seek reset valuations; Agoura Hills benefits from its affluent location, freeway access, and nearby amenities.

Shilo AI

A company focused on building AI assistants for real estate and tech applications. It marks a step forward in expanding AI's role in real estate operations.

What’s Next for AI in Property Management link

• In 2023, $29.1 billion flowed into 691 generative AI deals—up nearly 4x from 2022—fueling a wave of CRE-focused tools from predictive HVAC monitoring to tenant sentiment analysis.

• AI isn’t just about efficiency—firms like Prologis are using it to parse tenant data, flag lease renewal risks, and even identify rent-push opportunities faster than competitors.

• The real moat isn’t public data, but proprietary info: Without clean, structured, internal datasets, AI outputs are noisy, misleading, and nearly useless in real estate ops.

Climate chaos is about to wreck U.S. infrastructure

Big Changes Ahead for Opportunity Zones

Housing Feels the Pressure—Why Builders Are Bracing for a Slowdown

Mixed Multifamily Permitting Trends

Home Flipping Trends by State

Proptech Startups That Just Got Funded

Charted: Productivity Gains from Using AI

A basement house!

Link to the listing

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Vidit

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