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U.S. added 142,000 jobs in August; unemployment rate dips to 4.2% link

• The U.S. added 142,000 jobs in August, improving on July’s weak 114,000 gain. However, it still fell short of the 12-month average of 202,000 jobs.

• The unemployment rate dipped from 4.3% in July to 4.2% in August. Average hourly earnings also grew by 3.8% over the past year, surpassing inflation rates.

• Job openings fell to 7.7 million in July, down from 8.8 million a year ago. Both openings and quits are now back to pre-pandemic levels, signaling a return to a more typical labor market.

US Home Price Insights – September 2024 link

• Home prices nationwide grew by 4.3% in July 2024 compared to the same time last year, but the month-over-month change was flat at just -0.01%. CoreLogic forecasts a modest 0.2% rise in prices for August and a 2.2% increase by July 2025.

• High mortgage rates are slowing home price growth and keeping sales low. The Federal Reserve's potential rate cuts in the fall might boost demand, but the usual fall market slowdown will likely limit any big changes.

• Rhode Island (10.6%), New Jersey (9.7%), and Connecticut (8.3%) saw the largest year-over-year price gains in July 2024. Cities like Miami posted a 9.1% annual gain, leading major U.S. metro areas.

Multifamily looks forward to increased deal flow link

• The Federal Reserve's plan to reduce interest rates is driving optimism for more multifamily transactions. Lower financing costs could unlock significant capital for new deals.

• Since mid-2022, high borrowing costs have created a large gap between buyers and sellers, limiting activity. Many sellers chose to hold properties instead of accepting lower offers.

• Yardi Matrix reports a buildup of "dry powder," with investors waiting for better conditions. This pent-up demand suggests a potential surge in multifamily deal volume soon.

6.5 million second homes make up 4.6% of U.S. housing stock link

• U.S. has 6.5 million second homes, making up 4.6% of the total housing stock. Florida leads with 1 million second homes, about 15.3% of the national total.

• Seven states hold half of all second homes: Florida, California, New York, Texas, Michigan, North Carolina, and Arizona. This suggests these states are key areas for vacation or investment properties.

• Counties where second homes make up at least half the housing are spread across 14 states. Wisconsin and Colorado lead with the most counties, followed by Michigan, Minnesota, and others.

Investment sales reach lowest level in four years in July link

• Investment sales in July 2024 hit their lowest point in four years, dropping by 39% compared to the same month in 2023. This steep decline is primarily attributed to higher interest rates and economic uncertainties.

• Multifamily and office sectors experienced the sharpest declines, while industrial and retail properties showed relative resilience. Despite this, the overall market continues to be hampered by financing challenges.

• Major markets like New York, Los Angeles, and Chicago saw notable pullbacks in transaction volume. Investors are being cautious, waiting for better economic conditions before making large moves.

LA affordable senior housing to go double link

• Valley Pride Village in Los Angeles is adding 92 new units, doubling its capacity for seniors earning between 30-80% of the Area Median Income (AMI). This expansion will include studios, one-, and two-bedroom apartments.

• The project received over $50 million in tax credits, with $37 million coming from federal Low-Income Housing Tax Credits and $15.1 million from state credits. It also includes renovations like new roofing, windows, and upgraded appliances.

• Los Angeles’ senior population is expected to rise by 24% by 2030, intensifying the need for affordable housing. The project qualifies for a density bonus under the city’s Executive Directive 1, advancing affordable housing goals.

Ranking rent-to-income ratios across Texas’s largest apartment markets link

• Fort Worth has the highest rent-to-income ratio in Texas, slightly exceeding the national average of 22.5%. Dallas, despite higher rents, falls in line with the national norm.

• McAllen/Brownsville has the lowest rent-to-income ratio in the state, around 15%, showing significant affordability compared to other Texas markets. This region sits well below national averages.

• Rent-to-income ratios are calculated using a 12-month trailing basis, capturing signed new leases in market-rate apartments and reducing seasonal impacts. This offers a consistent measure of affordability across different markets.

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The contrast between funky and beautiful

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