Feds Are Coming for LLC and Trust Buyers in Real Estate

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Feds Are Coming for LLC and Trust Buyers in Real Estate

• Starting Dec. 1, 2025, all-cash residential purchases through trusts, LLCs, corporations, or partnerships must be reported to FinCEN, regardless of purchase price. About 13% of U.S. homes in 2024 were bought this way.

• The rule won’t touch individual buyers paying cash, but it shifts compliance to settlement agents, title companies, escrow officers, and attorneys who must file reports within 30 days.

• High-end markets like Miami are most exposed, where 80% of luxury deals above $2,000 per square foot were all-cash in 2025, but brokers say wealthy buyers can easily absorb the new compliance burden.

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Multifamily Rents Stall: Chicago and Midwest Pull Ahead While Sun Belt Slides link

• Average U.S. multifamily rent in August 2025 was $1,755, down $1 from July and only 0.7% higher than a year ago, showing how flat rent growth has become. Elevated new supply and record absorption are keeping leasing highly competitive.

• Many metros are past their supply peak as new construction starts drop sharply due to high costs and tighter financing, suggesting future relief on oversupply pressures.

• Rent growth leaders were Chicago, Columbus, the Twin Cities, New York City, and Detroit, while Austin, Phoenix, Dallas, Denver, and Las Vegas posted negative growth.

Office markets show first signs of thaw link

• Positive net absorption is back in most markets, with more tenants looking to expand office space, pointing to improving NOI prospects.

• CBRE’s latest Cap Rate Survey shows that after four straight increases, the share of B and C office properties with double-digit cap rates fell in H1 2025.

• Still, over 70% of lower-tier offices remain stuck with double-digit yields, underscoring that any recovery will be slow and uneven.

Self-Storage Market Stabilizes But Big Risks Loom in 2028 Debt Wall link

• National self-storage supply growth slowed to 2.9% through May 2025, with Public Storage cutting its forecast to just 2.5%, but oversupplied Sunbelt metros are already seeing rent compression.

• Nearly $2.7 billion in self-storage CMBS issuance priced in 2024, double the prior year, with cap rates widening to 6.2%, signaling more cautious underwriting even as investor confidence holds.

• While CMBS delinquencies remain just 0.28% on $21.6 billion in loans, about $4.2 billion of 2028 maturities sit in the 7–9.99% debt yield range, where thinner equity cushions could face refinancing strain.

Affordable Housing Gap Widens link

• One-third of the top 30 U.S. metros are highly competitive, with at least 50% of conventional units priced to compete with fully affordable housing. Another one-third are moderately competitive, while the rest show less than 25% competitiveness.

• Metros with average rents above $3,500, like New York, San Francisco, and Los Angeles, have very few market-rate properties competing with affordable units. Cities under $1,500 in average rents, including Las Vegas, Columbus, and Houston, show much higher competitiveness.

• Markets delivering more new apartments, like Austin and Dallas, show stronger overlap between market-rate and affordable rents, while older-stock metros like Miami skew toward luxury units that rarely compete with affordable housing.

Tool of the day - RentalBuddy

RentalBuddy leverages cutting-edge AI technology to streamline your search for a new home and compatible roommate, especially for young professionals and students.

Zillow Unveils AI-Powered Virtual Staging for Listings link

Showcase agents can now restyle rooms in real time with curated design themes, helping buyers envision possibilities, boosting clicks, and giving listings a measurable edge in pricing and speed.

AI Advisors Promise Stress-Free Home Buying link

From instant valuations to automated legal reviews, AI advisors filter noise, flag risks, and deliver personalized guidance, helping buyers cut stress and move with confidence.

CRE Pros Share How AI Actually Delivers on the Ground link

From brokers handling 5x more listings to marketers automating six-figure ad budgets, CRE leaders reveal how AI is cutting busywork, boosting deal flow, and quietly reshaping competitiveness.

Colibri Launches First-Ever AI Certification for Real Estate Agents link

With 75% of brokerages already using AI, Colibri’s REAIS program trains agents on 25 tools for valuations, client service, and risk management, arming them with credentials to stay competitive and compliant.

Here’s Where Homeowners Insurance Costs the Most and the Least link

• Homeowners in Colorado, Nebraska, Texas, and Florida face the highest insurance costs, with median annual premiums of $2,000–$2,499. Florida also has the most owners paying over $4,000 a year.

• Mortgage holders pay more, $1,500–$1,999 median versus $1,000–$1,499 for those without a mortgage, and in seven states, their premiums often exceed $2,000.

• One in seven U.S. homes is already uninsured, and 58% of homeowners say they’d consider dropping coverage if costs keep rising, underscoring growing affordability risks.

The Silent Crisis Hanging Over Housing’s Next Decade: A Harvard Study

New Trends Reshaping High-End Housing

The New Luxury Map: Where Wealth Is Quietly Moving

New Force Driving Rents Higher in Tech Hubs, Investors Take Note

Proptech Startups That Just Got Funded

Mapped: Where the Air Quality is Best in Each U.S. State

How much blue is too much blue?

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Vidit

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