Big Tech’s AI Job Cuts

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Foreign Investors Are Flocking to High US Yields—Even With Rising Hedge Costs link

• Since early 2022, foreign private investors have increased their U.S. Treasury purchases despite higher hedging costs. They're prioritizing the appeal of high nominal yields over currency risk.

• In contrast, foreign central banks and sovereign wealth funds have been net sellers of Treasuries, showing less sensitivity to U.S. yield changes. Their investment behavior remains driven by broader macro strategies, not short-term rates.

• The divergence in behavior suggests private capital could continue supporting U.S. debt markets, even if official institutions pull back. That’s a notable shift in who’s financing U.S. borrowing.

Multifamily Market Feels the Heat—Tariffs, Tight Budgets, and Surging Supply Cloud Outlook link

• Renters absorbed over 250,000 units through May 2025, with Austin alone accounting for nearly 9% of national demand, showing resilience even amid rising supply and economic headwinds.

• Single-family build-to-rent rents crossed $2,200 for the first time in June, growing 0.7% year-over-year, with Chicago, Kansas City, and Inland Empire leading rent hikes.

• Half of U.S. renters spent more than 30% of income on housing and utilities in 2023, especially in high-cost coastal metros and Sun Belt cities strained by underbuilding and migration-driven demand.

Big Tech’s AI Job Cuts Slam Office Demand link

• Wells Fargo has now reduced staff for 20 straight quarters, citing automation and AI as core to the strategy, with other giants like Verizon and Union Pacific following suit. Amazon expects AI to cut its corporate headcount “in the next few years.”

• Verizon’s workforce shrank 3.7% year-over-year, while Microsoft has already laid off up to 22,000 employees in 2025—Intel’s global cuts hit 25,000. Real estate and IT consolidation are driving much of this downsizing.

• 83% of employers are now using AI tools, and 41% say they’ll cut roles with outdated skills, according to the WEF. Layoffs tied to AI are increasingly normalized—with little public pushback or investor concern.

Nationwide Rail Merger Could Trigger Industrial Land Grab link

• Union Pacific’s $85B acquisition of Norfolk Southern would create a 50,000-mile coast-to-coast rail network, the first of its kind in over 150 years—poised to shift logistics and boost industrial property demand.

• Industrial outdoor storage and properties with rail access are expected to see “sharp rent growth” due to limited supply and increased demand tied to improved rail connectivity, especially in inland markets.

• The merger could redistribute logistics hubs across the U.S., easing port congestion in places like L.A. and creating new real estate opportunities near emerging distribution nodes—if regulators approve the deal.

Home Equity Bounces Back link

• Nearly half (47.4%) of U.S. mortgaged homes are now equity-rich, reversing a 3-quarter decline, thanks to record-high home prices. But that’s still below last year’s 49.2% peak.

• Louisiana remains a serious red flag: only 18% of homes are equity-rich, while 11.9% are seriously underwater—both worst in the country. The state holds 19 of the 25 worst counties for home equity.

• California dominates equity-rich zip codes, but New England leads by state. Vermont tops the charts with 84.9% of homes equity-rich, while Baton Rouge sits at just 16.2%.

Trump Sets New Deadline for Tariffs—Here’s How It Will Affect the Housing Market link

• The U.S. just raised tariffs on Canadian softwood lumber from 25% to 35%. Since Canada supplies 85% of U.S. softwood lumber, this will sharply increase homebuilding costs.

• Prices for steel, aluminum, and key building materials are also rising due to expanded tariffs. These added costs will trickle down to homebuyers through more expensive new construction and appliances.

• Economists warn this will worsen already tight housing inventory and affordability. Builders may slow down, and buyers will face fewer options at higher prices.

New York City Rental Report 2025Q2: Closing the Affordability Gap Would Take Decades, Not years link

• The median NYC rent hit $3,491 in Q2 2025, up 3.7% from last year and now consumes 55% of the average household income—nearly double the standard affordability limit.

• Brooklyn rents rose the fastest, jumping 6% year over year, while the Bronx, despite having the lowest rents, remains the least affordable due to extremely low median incomes.

• Even if rents freeze today and incomes grow 3% annually, it would take 20 years for NYC to reach the 30% rent-to-income affordability benchmark.

Tool of the day - FoxyAI

FoxyAI’s Artificial Intelligence, Computer Vision, Machine Learning and Data Science provides unparalleled Visual Property Intelligence. Its models employ the latest technology, data science and innovation to allow users to instantly and accurately assess property condition, generate new insights, and improve margins.

AI Is Now Shaping the Future of Healthcare Facility Design – link

Colliers explores how AI is optimizing layout, airflow, and patient flow in medical buildings — helping developers cut costs and boost outcomes through smarter design.

How Property Managers Are Using AI to Boost Project Success – link

From smart sensors to predictive analytics, property management firms are turning to AI to reduce costs, speed up development, and improve tenant satisfaction.

LinkHome’s IPO Bets Big on AI-Driven Real Estate Disruption – link

The proptech firm is going public with a bold promise: use AI to streamline every part of the transaction — from discovery to closing — and reshape how homes are bought and sold.

NavigatorCRE Partners with Arria to Supercharge Proptech with AI Narratives – link

By combining real estate analytics with natural language generation, this new partnership helps CRE pros instantly translate data into powerful, decision-ready insights.

Mapped: Average House Prices by U.S. State link

• California leads with a median home price of $825,000, far ahead of every other state. Tight zoning laws and limited new construction continue to drive the shortage.

• The Midwest and South remain the most affordable, with states like Alabama ($220K), Ohio ($240K), and West Virginia all under $250K—offering value for price-sensitive buyers and investors.

• Pandemic-era migration continues to drive up prices in Mountain West states: Utah sits at $562K, Montana at $495K, and Idaho at $471K, all above the national average.

Big investors are buying this “unlisted” stock

When the founder who sold his last company to Zillow for $120M starts a new venture, people notice. That’s why the same VCs who backed Uber, Venmo, and eBay also invested in Pacaso.

Disrupting the real estate industry once again, Pacaso’s streamlined platform offers co-ownership of premier properties, revamping the $1.3T vacation home market.

And it works. By handing keys to 2,000+ happy homeowners, Pacaso has already made $110M+ in gross profits in their operating history.

Now, after 41% YoY gross profit growth last year alone, they recently reserved the Nasdaq ticker PCSO.

Invest for $2.90/Share

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Vidit

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