Industry News: Home Prices Hit an All-Time High, Continued Single-Family BTR Gains, and a Surge in Industrial Development
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Episode Overview
Welcome back to another episode of the Land Development Podcast. Today, Ryan Glick is joined by Charles Covey to discuss the latest news and trends in the real estate market.
First up, Ryan and Charles analyze a report from The Real Deal on the continuous rise in home prices, noting a 6.5% year-over-year increase in March. They discuss the factors contributing to this trend, including low inventory, rising mortgage rates, and the impact of location on price dynamics. They suggest that the lack of new construction in certain home types and locations plays a significant role in these price hikes.
Next, the conversation shifts to the build-to-rent sector. Ryan and Charles review data from the National Association of Home Builders, highlighting a significant year-over-year increase in single-family build-for-rent starts. They discuss the reasons behind this growth, such as high mortgage rates and changing preferences among millennials who prioritize flexibility over homeownership.
Finally, they delve into the industrial real estate market, citing a Biz Now article about the resurgence of industrial deals due to interest rate stability. Charles explains why industrial properties are attracting investors, emphasizing the sector’s strong fundamentals and ongoing demand driven by reshoring and consumer habits.