Lab space bubble, Foreign capital trends, The Flintstone House

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AI boom breaks Fed’s grip, data centers surge even as rates rise link

• Despite Fed rate hikes since 2022, AI-driven data center investment hasn’t slowed , unlike office capex, which collapsed. Equity gains from the “Magnificent Seven” tech stocks are financing much of the boom.

• The usual transmission of monetary policy has failed in this sector: higher interest rates aren’t cooling spending, as equity-fueled capital flows keep money cheap for AI infrastructure.

• Outside of AI, corporate capex has flatlined , highlighting how growth is now narrowly concentrated in data and compute infrastructure rather than broad business investment.

Affordable housing NOI jumps 5.6% as expenses cool but Austin, Seattle slide link

• Net operating income across affordable housing properties rose 5.6% year-to-date through August 2025, driven by slower expense growth and higher allowable rents under new HUD rules. Average NOI per unit hit $6,886, with income up 3.7% and expenses up just 2.3%.

• Insurance costs, which had soared 128% since 2020, grew only 0.2% in 2025, helping margins recover. Markets like Raleigh and Columbus saw double-digit NOI gains as insurance costs dropped 7–14%.

• Not all metros shared the boost: Austin, Seattle, Baltimore, and Atlanta saw NOI declines due to rising expenses, unpaid rents, and competition from market-rate units expanding 25% in Austin over three years.

Homebuilder profits jump even as sales slump link

• Publicly traded builders managed to grow profits despite slowing sales volumes in the latest quarter, signaling strong pricing discipline and operational control.

• Economic uncertainty and political headwinds didn’t dent margins as much as expected , cost reductions and higher average selling prices offset the volume drop.

• Analysts say builders are “testing” demand elasticity, holding firm on pricing rather than discounting, a strategy that could backfire if rates stay high into 2026.

Renewals, not rent hikes, are propping up multifamily NOI link

• Renewal rent growth is holding at ~3.5–4% while new-lease asks are flat or falling in high-supply metros; tenants are staying longer as mortgage costs keep first-time buyers sidelined. Yardi Matrix notes this retention is “propping up NOI.”

• Renewal premiums are beating new-lease trade-outs in nearly every market (exceptions: Manhattan/Northern NJ), with two-bedrooms showing the widest gap. Operators are using renewals to offset concessions and slower absorption, and occupancy is expected to stabilize in the mid-90% range through 2026.

• Expense growth has cooled to ~2.5% even as insurance/utilities remain elevated, improving margin math when paired with higher-rate renewals. With development/financing constraints slowing new supply after 2025 and household formation ~850k/year (multifamily capturing ~half), the rent roll is getting steadier and older.

Lab space bubble deflates , DC and Silicon Valley landlords hit by shrinking biotech demand link

• The once-booming lab-space sector is cooling fast as federal research grants slow and biotech startups struggle to raise new funding. Key hubs like Washington DC and Silicon Valley are seeing rising vacancies and delayed build-outs.

• Developers who overbuilt during the 2021–2023 biotech surge are now facing double-digit vacancy rates, reversing the tight-space conditions that sent rents soaring two years ago.

• Institutional investors who poured billions into lab conversions are re-evaluating holdings, with some projects on hold or seeking alternative tenants outside the life-sciences sector.

My take: The lab-space market feels like the office sector’s smarter cousin finally hitting the same wall , too much supply chasing too little research money. Unless federal funding rebounds, this could be the first big “re-pricing” moment in biotech real estate.

Foreign capital floods Miami, Latin American investors now driving nearly half of all condo sales link

• Miami-Dade commercial sales jumped 30% in 2025, led by multifamily deals and a wave of foreign cash buyers treating the city as a “safe haven.” Nearly 49% of condo sales in the last 18 months came from international buyers , up from just 10% in prior years.

• Latin American investors make up 86% of those foreign purchases, viewing Miami real estate as a hedge against inflation and political turmoil back home. Heavyweights like Brazil’s Opportunity Fund and Spain’s Ponte Adea have poured over $1 billion into projects.

• Despite high rates, Miami’s fundamentals remain hot: vacancy under 5%, average rents at $2,385 (2nd highest in the U.S.), and 30,500 new units under construction. The region trails only Charlotte in multifamily pipeline growth.

Tool of the day: Canary Technologies

Software to improve guest experience, streamline operations and boost hotel revenue

AI and Niche Materials Slash California Project Costs by 50% link

GlobeSt reports a Central Coast development cut expenses in half using AI-driven design tools and specialized low-carbon materials, showing how tech-assisted construction is rewriting the economics of sustainable real estate.

Revive AI Brings Personalized Lead Generation to Agents link

Revive launched a free AI platform that lets agents create branded lead forms, automate outreach, and track homeowner engagement, blending computer vision, comps analysis, and CRM-style dashboards to boost conversions and client retention.

Propy Launches $100M AI + Blockchain Expansion to Digitize U.S. Titles link

The proptech firm is acquiring regional title companies in CA, TX, and FL while deploying “Agent Avery,” an AI escrow officer that automates 70% of closing work, cutting transaction costs 40% and linking real estate directly to DeFi capital markets.

Blockchain and AI Push into Real Estate, Regulation Slows the Shift link

From blockchain-powered title transfers to AI-driven underwriting, U.S. real estate is quietly modernizing , but regulatory guardrails and fragmented county systems are keeping full-scale adoption just out of reach.

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Industrial / Logistics Investor Outlook 2025

Consumer Housing Trends Report 2025

Latest 2025 Luxury Housing Report: More for Your Money

The State of Mortgages in 2025: Percent of Equity-Rich Properties for the Third Quarter 2025

Proptech Startups That Just Got Funded

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The Flintstone House

Link to the listing

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Vidit

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