Multifamily insurance up 172% in 10 years

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Data center power use set to double by 2030—AI fueling surge link

• Data centers account for 5% of U.S. electricity demand today, but that share is forecast to climb above 10% by 2030, driven by AI and cloud growth.

• This doubling of power demand over five years could pressure already strained energy grids and raise costs in key markets.

• Utilities and real estate tied to energy-intensive infrastructure may see outsized demand as operators scramble for power capacity.

Office leasing slump eases—South bucks trend with surprise gains link

• Occupied office space fell 2.5 million SF in Q2 2025, but that’s a major improvement from the 15.6 million SF average quarterly losses between 2020 and 2024. National vacancy sits at 20.4%, only 20 bps higher than last year.

• Nearly half (49%) of pre-pandemic leases remain unrenewed, with 1.4 billion SF up for renewal by 2027. Average lease sizes are down 12.5%, but 69% of tenants plan to keep or expand space, hinting at stabilization.

• The South led the nation with occupancy gains—Houston added 572K SF and Nashville 500K SF—while other regions saw a combined 3.2M SF loss. Secondary and tertiary markets posted the strongest rent growth at +3.7% year-over-year.

Multifamily costs surge—insurance up 172% in 10 years link

• From 2015–2024, national multifamily operating expenses rose at a 4.15% CAGR, with the largest metros seeing even faster growth at 6% annually. This is well above the 3–5% underwriting norm investors typically rely on.

• Insurance costs have been the biggest drag, climbing at an 11.77% CAGR and nearly tripling per unit in markets like New York City ($624 in 2015 to $1,522 in 2024). Real estate taxes also jumped 61% over the decade.

• Despite rising costs, national multifamily revenues still grew 4.96% CAGR and NOI 5.58%, but the margin pressure is clear—expenses are outpacing rent growth in several metros.

Housing starts jump 13%—but new permits signal slowdown ahead link

• July housing starts hit 1.43 million (SAAR), up 5.2% from June and 12.9% higher than last year. But building permits dropped 2.8% from June and are down 5.7% year-over-year, showing future weakness.

• Single-family starts rose 2.8% in July to 939,000, but are lower than last year in every region except the South. Multifamily construction provided most of the boost this month.

• Builders face slower sales, weaker demand, and rising costs. Unsold new homes are piling up, price cuts are more common, and in June the median new-construction price per square foot was 1.5% lower than a year ago.

Massachusetts Blocks 96% of Duplexes and Triplexes—Harvard Pushes Bold Zoning Fixes link

• 96% of Massachusetts residential land only allows single-family homes by-right, while just 7% allows triplexes. This zoning lockout is a key reason missing middle housing is nearly impossible to build.

• Harvard researchers propose six reforms, including reducing lot sizes to 2,000 sq. ft. or less, cutting parking minimums to one space per unit, and carving out a new building code for up to six-unit buildings. These steps aim to lower costs and open up infill opportunities.

• Oregon legalized missing middle housing statewide in 2019, and nine other states have since followed. Massachusetts could tap into this trend by passing statewide zoning reform backed by broad political coalitions.

Boston apartment vacancies hit 4-year high—landlords may soon regain pricing power link

• Multifamily vacancy in Greater Boston spiked to 6.3% in Q2, the highest since 2021, with Inner Suburbs hitting 10.2% and Route 128 North at 9.1%. A flood of 3,000+ new units drove the jump.

• Despite vacancies, rents still rose 2.2% over the past year to $3.28 per square foot, beating Sunbelt cities like Atlanta, Austin, Phoenix, and Charlotte where rents declined.

• Construction is slowing, with only 4.2% of inventory under development—the lowest since 2012. Colliers expects this could give landlords leverage to push rents higher in coming years.

Tool of the Day - Firmus

Firmus uses AI to detect design and compliance risks in construction documents before building begins.

Bell Partners Taps Perplexity AI to Shake Up Multifamily Strategy – link

The partnership brings advanced AI insights into tenant behavior, rent trends, and operations — arming one of the nation’s biggest multifamily owners with a data edge.

AI Is Getting Shockingly Good at Predicting Property Prices – link

By crunching massive datasets on sales, demographics, and amenities, AI models are forecasting home values with accuracy levels once thought impossible.

Is Palomar the Contrarian AI Real Estate Play to Watch? – link

Palomar is betting on AI-powered risk modeling and property innovation — positioning itself as an under-the-radar winner in the real estate tech shift.

AI Summit Draws Real Estate Heavyweights to Talk Tech’s Future – link

Top brokers, lenders, and tech leaders gathered to explore how AI is reshaping transactions, marketing, and operations across the real estate industry.

The Rise in First-Time Home Buyers’ Age link

Million-Dollar Earners Double in a Decade—These States Reap the Biggest Gains

Rental rebound: why developers are suddenly bullish again

Seven Major Metros Where Rents Are Flat or Falling This Summer

The Quiet Outperformer in CRE Finance

Seven Markets with Deep Supply Drops in the Next Year 

Proptech Startups That Just Got Funded

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Vidit

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