GDP jumps 3%, Student housing surges, Hamptons Real Estate Booms

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GDP jumps 3%—but trade math hides real slowdown link

• The 3.0% GDP growth in Q2 was largely driven by a massive 30% drop in imports, artificially inflating the number through trade accounting quirks. Core domestic demand—excluding trade and government spending—slowed to just 1.2%, the weakest since late 2022.

• Consumer spending only grew 1.4%, below the usual ~3% trend, while business investment declined despite available tax incentives. This signals underlying economic softness masked by headline growth.

• Tariffs are raising inflation pressure again, with average rates now at 20%, up from under 3% earlier this year. Economists now expect sub-1% growth in both Q3 and Q4 as policy uncertainty clouds business confidence.

Student housing preleasing surges link

• Preleasing at Yardi 200 schools hit 85.3% in June—up 160 bps YoY—but advertised rents slipped to $909 per bed, down from $917 last month. Rent growth is slowing as operators focus on filling inventory before fall.

• Sales volume dipped, but asset pricing surged: 50 properties traded hands YTD, with average per-bed pricing jumping to nearly $94,000—up from $73,500 across 2020–2024. Fewer deals, but higher value.

• Some schools are way ahead—like University of Cincinnati (up 23.9%)—but 20 markets are lagging 10% or more behind last year’s prelease levels. Notable underperformers include Purdue and North Texas.

Multifamily managers stay bullish—even as renter retention slips link

• Property managers aimed for a 63% renter retention rate in 2025, but actual retention came in at 58%. Despite this gap, 73% of managers still believe retention will rise in 2026.

• The share of companies targeting 70%+ retention has more than tripled since 2021, signaling a shift toward aggressive retention strategies to protect NOI.

• Renters say cost, maintenance, and safety are top reasons for leaving—yet managers wrongly believe life changes and tech features are driving churn.

Vacancy Crisis Deepens: 1 in 10 Office Buildings Now Half Empty link

• Vacancy pain is concentrated: While the average vacancy rate sits at 19%, the bottom 10% of office properties are at least 48.7% vacant—up from 32% in 2019. These buildings are struggling far more than the averages suggest.

• High-quality offices still winning: Top-tier properties are maintaining full occupancy, showing how tenant demand continues to favor newer, upgraded spaces. The rest of the market is being left behind as leases roll over.

• Bigger buildings, bigger problems: Weighted by square footage, the average vacancy rate is 19%, but the unweighted average is just 13.2%. That gap shows that large, commodity buildings are dragging the market down.

Affordable housing just got a profit boost—here’s why investors are piling in link

• A new tax and spending bill expanded the Low-Income Housing Tax Credit (LIHTC), increasing the 9% credit allocation to states by 12% and easing financing rules—potentially enabling 1 million new affordable rental homes by 2035.

• Jonathan Rose Companies closed a $660 million impact fund focused on acquiring and preserving affordable and mixed-income housing in high-demand urban areas, signaling strong investor interest from family offices and foundations.

• Despite bipartisan legislative support, a proposed $27 billion federal rental assistance cut is already making lenders nervous and could stall projects if approved by Congress.

Hamptons Real Estate Booms—Sag Harbor Sales Jump 774%, $1.4B Moves in 3 Months link

• Sag Harbor exploded in Q2 2025, with home sales up over 200%, median prices up 79%, and total volume skyrocketing 774%, making it the hottest village in the Hamptons.

• Ultra-luxury homes ($20M+) saw a 33% jump in sales, even as the median price hit $11.35M and listing prices neared $8M in areas like Bridgehampton and Sagaponack.

• Inventory is finally rising, up 8.2% in the luxury segment, pulling sidelined buyers back in as move-in-ready homes between $2M–$5M dominate demand.

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AI Is Coming for Multifamily Utility Billing — And It’s a Game Changer – link

New AI tools are automating utility expense allocation, spotting billing errors, and boosting NOI — giving operators tighter control over property performance.

PropertyLimBrothers Is Quietly Leading the AI Proptech Revolution – link

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Luxury Presence Unveils AI Marketing Team to Power Up Agent Branding – link

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New AI Assistant Built Just for Real Estate Agents Hits the Market – link

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