Rents Slide Again, 265 Sq Ft House

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Data center boom cools; growth rate tumbles from 80% to 30% in two years link

• U.S. data center construction is still expanding, but the pace has slowed sharply, from an 80% growth rate two years ago to just 30% now, per Apollo’s chief economist.
• The deceleration follows a wave of hyperscale buildouts in 2022–2023 as AI and cloud demand surged; much of that early momentum is now tapering off.
• Despite the slowdown, data centers remain a key growth driver for construction, signaling the sector is stabilizing after an overheated expansion phase.

Rents Slide Again; Vacancies Hit Record 7.1% link

• National median rent fell 0.4% in September to $1,394, the second straight monthly dip, and is now 3.3% below its 2022 peak. Despite the cooldown, rents remain 22% higher than in early 2021, underscoring how sticky pandemic-era pricing still is.

• Vacancy rates hit a record 7.1%, the highest since tracking began in 2017. Over 600,000 new multifamily units delivered in 2024, the most since 1986, are still being absorbed, keeping pressure on landlords to compete on price.

• Austin rents plunged 6.5% YoY (–19% from 2022 peak) while San Francisco surged +4.9% YoY, with city rents up a shocking 12.4%. The Sun Belt’s overbuilding is creating softness just as the Bay Area finally regains pricing power.

My take: This isn’t just a seasonal dip, too many new apartments are hitting the market at once. Landlords in places like Austin are feeling the squeeze, while spots like San Francisco are finally waking back up. If you’re investing, it’s a good time to be cautious in the Sun Belt and start watching the urban cores again.

Bank CRE loan delinquencies hold steady; office distress finally cooling link

• Banks originated $6B in new commercial mortgages in Q2 2025, up from $5.1B in Q1, a sign lending activity is ticking up even amid rate and policy uncertainty.

• Delinquencies stayed flat at 1.94% for the third consecutive quarter, suggesting CRE credit quality is stabilizing after a volatile 2023.

• Office loan delinquencies fell by 20 bps to 6.13%, while charge-offs dropped to $800M from $933M, marking the sector’s first sustained improvement since the pandemic.

Multifamily rents see biggest monthly drop in 3 years; oversupply and job slowdown squeeze demand link

• U.S. multifamily rents fell $6 to $1,750 in September 2025, marking the largest one-month decline since November 2022, according to Yardi Matrix.

• A glut of 500,000+ units in lease-up is flooding the market, driving negative year-over-year rent growth in supply-heavy metros like Denver, Phoenix, Las Vegas, Dallas, and Austin.

• Slowing job growth, only 22,000 new jobs in August, and rising unemployment are compounding renter anxiety, though Fed rate cuts could soften the blow later this year.

Peak Buying Week Kicks Off link

• Realtor.com says the week of Oct. 12, 2025, marks the best buying window of the year, with 32.6% more active listings than January and potential savings of over $15,000 compared to summer peak prices.

• Inventory has climbed past 1 million listings nationally, easing competition but still slightly below pre-pandemic levels and in some markets like Austin, conditions already lean buyer-friendly.

• Timing varies regionally: New York and Philly peaked in September, while Miami and Tampa won’t hit prime time until December, showing how local data now matters more than national averages.

California closes its last “home equity theft” loophole; protecting thousands from losing six-figure equity in tax foreclosures link

• A new California law (AB 418) ends the practice where counties could seize tax-delinquent homes and transfer them to agencies or nonprofits without paying owners for remaining equity. It forces all foreclosures to go through a sale so any surplus goes back to the homeowner.

• The reform follows the 2023 Supreme Court Tyler v. Hennepin County ruling, which barred governments from keeping proceeds beyond what’s owed. Until now, California was the last state with a major loophole letting local governments bypass that rule.

• Roughly 3.3% of California mortgage holders were delinquent on property taxes in 2024, meaning hundreds of thousands of households were exposed to potential equity loss before this change.

Tool of the day: Wherobots

An AI-powered geospatial analytics platform offering tools like Wherobots Cloud, WherobotsDB, and WherobotsAI to process and analyze spatial data at scale.

AI Editing in Real Estate Photos Could Get You Sued link

Fstoppers warns that removing AI logos or altering property details with tools like Gemini or ChatGPT can violate copyright law and MLS rules, leaving agents and photographers exposed to legal and compliance risks.

Jotform Launches AI Agents for Real Estate Workflows link

The new Jotform AI Agents help agents automate lead follow-ups, generate listings, and handle client messages, making it easier for solo agents and brokerages to scale productivity without extra staff or technical setup.

Zillow App Goes Live Inside ChatGPT link

Zillow becomes the first real estate app integrated into ChatGPT, letting users search listings, view maps, and schedule tours directly through AI prompts, marking a major leap toward conversational home shopping.

82% of Americans Now Use AI for Real Estate Insights link

A new Realtor.com survey finds ChatGPT and Gemini leading housing searches, yet agents remain the most trusted advisors, showing AI is reshaping how consumers explore listings without replacing human expertise.

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A 265 sqft house!

Link to the listing

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Vidit

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