Markets facing most pressure from tariffs

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Trump administration eyes deep cuts to Section 8 housing vouchers link

• The White House is considering replacing federal Section 8 vouchers with smaller state-run housing grants, potentially reducing aid for millions. About 2.3 million households currently rely on the program, and only one in four eligible families receives assistance.

• Congressional Democrats estimate 32,000 households could lose their vouchers as a pandemic-era expansion expires. Los Angeles has already stopped accepting new applications due to budget uncertainty.

• Cuts could force local housing agencies to reduce support or remove families from the program. HUD has not commented, and no final decisions have been announced yet.

Most apartment markets still below pre-pandemic occupancy link

• National apartment occupancy in Q1 2025 was 95%, slightly below the 2015–2019 average of 95.2%. Sun Belt markets like Fort Worth, Austin, Charlotte, Orlando, and Nashville saw the biggest drops, down 150 to 200 basis points.

• Midwest markets performed better, with cities like Indianapolis, Chicago, and St. Louis exceeding pre-pandemic occupancy levels. Minneapolis was a major outlier, with occupancy still down 190 basis points but expected to improve as supply slows.

• Northeast markets held the most stable, with nearly all major cities posting occupancy above pre-COVID levels. Boston was the only exception, falling just 10 basis points below its pre-pandemic average.

Homebuilders see supply prices rising amid tariff volatility link

• Material costs for new-home construction have increased by 5.5% since the start of President Trump's second term. Remodeling projects have seen an even higher spike of 6.9% in the same period.

• Current tariffs include a 10% duty on most products from Canada and Mexico, a 145% tariff on Chinese goods, and a 25% tax on all steel and aluminum imports. These measures have led suppliers to raise prices, even before full implementation.

• The uncertainty surrounding tariff policies has caused 24% of U.S. residents to cancel plans for major purchases like homes or cars, with an additional 32% delaying such decisions. This hesitancy is impacting homebuilders' sales expectations and overall market confidence.

These markets face price pressures as tariffs trigger rent increases link

• A new 25% tariff on steel and aluminum is pushing up construction costs and could stall multifamily development in high-growth cities like Milwaukee, Oklahoma City, and Memphis. Milwaukee’s multifamily permitting is up 101.3% over its five-year average, making it especially vulnerable to project delays.

• March 2025 marked the 20th straight month of rent declines, with the median rent in the 50 largest metros falling to $1,694—down 1.2% year-over-year and 3.7% below the 2022 peak. But rising material costs from tariffs may reverse that trend by choking off future supply.

• Since March 2019, rents have climbed 20.2% nationally, with Pittsburgh, Tampa, Indianapolis, and Sacramento seeing the sharpest increases. If fewer new units hit the market, renters in these cities could see prices rise again.

AI agent platform promises to ‘transform mortgage operations’ link

• Florida-based Theoris Software launched Alpha7x, an AI-powered co-pilot that automates tasks like data entry, document review, and compliance tracking in mortgage operations. The tool integrates directly into existing loan origination and servicing systems.

• Theoris claims Alpha7x can cut operational costs by up to 60% and boost productivity by as much as 7x in certain tasks. It also uses real-time analytics to flag risks and create audit-ready logs.

• Mortgage inefficiencies cost the industry over $300 billion annually, driven by legacy systems and rising labor costs. Theoris believes Alpha7x marks the beginning of a new tech-driven era in lending.

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Can't even afford to look at photos of this house.

Link to the listing

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Vidit

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