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Fading West: Modular Homes Offer Solution to Housing Crisis

by Priya Shah – Business Editor September 28, 2025
written by Priya Shah – Business Editor

Modular Homes: A Growing Solution to housing Challenges

Modular construction is gaining recognition ⁣as⁣ a viable solution to address affordability,speed of construction,and sustainability issues within the U.S. ‌housing market.⁢ Built in controlled indoor environments,these homes adhere to the same building codes as traditionally constructed homes,including those set ⁣by the International Building Code,as well‌ as state and local regulations,according to Tom Hardiman,executive director of the Modular Building ⁢Institute (MBI) and⁢ the Modular Homebuilders Association (MHA). MBI represents manufacturers of multi-family and commercial buildings,while MHA focuses on single-family dwellings.

While currently representing a smaller portion of overall‌ homebuilding, modular ​construction offers significant advantages over ⁣conventional “stick-built” methods. These include increased affordability,faster build times,reduced material waste (nearly 25%),and minimized weather-related damage. Jordan Rogove, a partner and ​co-founder of DXA studio, asserts this results in “a more​ sustainable, less⁣ expensive, better-built product.”

Research from the Urban Institute supports this view. Michael Neal, a principal research associate and equity scholar there, notes⁣ that customary on-site construction has seen ​limited productivity gains in recent⁢ decades. His research indicates modular builders can ⁤cut production time ⁤by as ⁤much as 50%,⁣ factoring in the often complex permitting ⁢processes.

Furthermore, modular construction addresses the challenges of labor shortages faced by traditional builders. modular factories​ maintain a full-time, local, and well-compensated workforce, shielded from the disruptions of inclement weather. Neal suggests that modular construction “might potentially ‌be how affordable housing is reached.”

Companies like Fading West are actively pursuing this potential. while initially focused⁢ on disaster relief, notably ⁢in Hawaii, they are expanding their ​scope to include housing for essential workers like teachers, police officers, and⁤ firefighters.⁣ Fading‍ West is currently undertaking projects in Wyoming, Utah, Montana, Texas, ⁤and New mexico. ⁣

The ‍company is‌ also demonstrating the versatility of the modular model through a partnership ​with Home/Town Developments in Los Angeles, ​providing housing options for victims of wildfires ​in Pacific Palisades and Altadena. These range from multi-million-dollar, 3,000-square-foot homes ⁤with five bedrooms to more ‍affordable 1,200-square-foot, two-bedroom ⁣models.⁤

Fading West’s ⁤founder, Schaefer, describes the modular approach ​as akin ​to building with “Lego blocks,” highlighting the ability to ​customize⁢ homes to meet ⁢diverse homeowner needs and budgets.

September 28, 2025 0 comments
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World

Mortgage Rates Fall, Demand Stalls Amid Fed Rate Cut

by Priya Shah – Business Editor September 27, 2025
written by Priya Shah – Business Editor

Mortgage Demand Pauses Despite Falling Rates

Mortgage demand experienced a stall last week, despite a further dip in interest rates, following a important 58% jump in refinance applications the prior week.According to the Mortgage Bankers Association (MBA),total submission volume edged up just 0.6% week-over-week.

The average contract interest rate for 30-year fixed-rate mortgages (conforming loan balances of $806,500 or less) decreased to 6.34% from 6.39%, with points rising to 0.57 from 0.54. this represents the lowest rate seen as September 2024. Though, the week was marked by volatility; rates initially fell to a three-year low early in the week, influenced by the 10-year Treasury yield, before rising approximately 0.25% following the Federal Reserve’s rate cut declaration.

Refinance demand, while still elevated after the previous week’s surge, only increased by 1% for the week. Though, it remains a ample 42% higher than the same period last year.

Mike Fratantoni, senior vice president and chief economist at the MBA, noted that while rates have generally risen post-FOMC meeting, they remain at a level conducive to increased refinance activity. he highlighted that refinance volume is now 80% higher than four weeks ago, representing over 60% of all application activity, with a significant boost coming from government applications, particularly VA refinance volume which jumped almost 15%.

Purchase applications remained largely unchanged, increasing by a mere 0.3% for the week, but are still 18% higher year-over-year. Fratantoni added that despite the typical seasonal slowdown in fall, purchase activity remains surprisingly robust.

Demand for adjustable-rate mortgages (ARMs), which had seen a surge as borrowers sought lower monthly payments, retreated last week.

Looking ahead, mortgage rates have remained relatively stable at the start of this week, according to Mortgage News Daily, due to a lack of significant economic data. While speeches from Federal Reserve officials,including Chair Jerome Powell,offered no deviation from previous policy statements,some traders were relieved that Powell didn’t reiterate points from last week’s announcement that had previously pushed rates higher.

September 27, 2025 0 comments
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World

Office Market Recovery Accelerates: Capital Demand Surges

by Priya Shah – Business Editor September 27, 2025
written by Priya Shah – Business Editor

Key Takeaways from teh Office Market Report: A Summary

This⁢ report paints a picture of a slowly recovering,⁢ and evolving, office market. Here’s a breakdown ‍of the key points:

1.‍ Increasing Investment & Capital Flow:

* Bid Volume is Rising: ⁣ Office bid volume is significantly up, ⁣with $16 billion in Q2 2024 ⁣-⁣ the highest quarterly total as Q2 2022 (when 10-year Treasury yields were below 3%). ‍this indicates renewed health and growth in the sector.
* Investor Sequence is Returning: the typical pattern of⁢ investment is re-emerging: ⁣high-net-worth individuals first, followed by‌ REITs, and‍ then ⁣larger institutional investors (pension funds, offshore capital).
* Larger Deals are Increasing: Demand for deals over $100 million is ‍up roughly 130% in the first half of 2024 compared to the same period in 2023, ⁢driven⁤ by institutional appetite‍ and improved debt availability.

2.⁤ Flight ​to ‍Quality ​& Future ⁢Demand:

* Top-Tier Buildings are Preferred: Demand is heavily focused on high-quality office buildings.
* Second-Tier Potential: As ⁢top-tier⁤ buildings fill, demand will likely shift to second-tier buildings, possibly outpacing the top tier​ in rental rates and absorption over⁣ the next ​five years.

3. Limited new Supply:

* Construction is at a Standstill: ‌New office construction⁤ is drastically down,with⁤ only 6 million square feet expected to be delivered next⁤ year – 90% below the post-financial ‌crisis average. ⁤ This is described as “hitting a brick‍ wall.”
* Inventory⁤ Reduction: Older,less desirable​ buildings are being demolished or repurposed (residential,hospitality,storage,etc.), ‌further‌ reducing overall office inventory.

4. Distressed assets & Opportunistic Investing:

* “Dark Matter” Opportunities: Distressed, low-occupancy ‌buildings in secondary markets (Detroit, Pittsburgh, etc.)​ are attracting bargain hunters seeking ⁤high returns. These assets are available at significantly‌ reduced prices ‌(e.g.,$50/foot⁢ vs. ​$300/foot five years ⁣ago).

5.Stabilization & Demand Tailwinds:

* Downsizing Slowing: Company downsizing is stabilizing, with space reduction during ‍relocation dropping from almost 20% in 2022 to 3% currently.
* REIT​ Performance: ⁤Office REITs (BXP,​ Vornado, SL Green) are showing improved stock ‍performance, ⁤though‌ Alexandria Real Estate Equities ⁢is still lagging.

6. Interest‍ Rate‍ Impact & Economic Concerns:

* ⁣ lower Rates Help, But…: ​ Lower interest rates will ease dealmaking costs, but are a symptom of economic weakness, which could negatively impact tenant demand.
*⁣ Macroeconomic Factors are Key: The overall economic climate, geopolitical‌ risks,​ and debt costs are‌ all crucial factors influencing the​ office market.

Overall ​Outlook: The report suggests “green shoots” of recovery in the office market, ‍with ‌increasing investment, limited supply, and⁣ stabilizing ‍demand. However, the recovery is contingent on broader economic conditions and the continued flight to quality. next year is expected ​to see institutional capital taking a leading role.

September 27, 2025 0 comments
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World

Existing home sales stall in August amid higher mortgage rates

by Priya Shah – Business Editor September 26, 2025
written by Priya Shah – Business Editor

Existing Home Sales Remain Flat in August ⁢as Inventory Tightens

Existing home sales were largely‌ unchanged in August,‌ registering a⁢ seasonally adjusted annual rate of 4 ‍million units, according too ⁢the National Association of Realtors (NAR). This represents a slight 0.2% decrease from July but a 1.8%⁢ increase compared to‌ August of the previous year. The Midwest⁢ region experienced the strongest sales, while the Northeast lagged behind.

These figures reflect closings from deals finalized in June ⁢and July, a period when mortgage rates were approximately 50 basis points higher than current levels. The recent decline in mortgage rates at the beginning of September will not be reflected in this data.

A divergence is apparent within​ the market, with higher-priced⁢ homes outperforming those at the lower end. Sales of homes priced above $1​ million rose 8% year-over-year, leading all segments. ​Conversely, sales of homes under $100,000 declined ‌by ‍over 10%‌ compared to a year ago.

“Record-high housing wealth⁣ and a record-high stock market will help ⁣current homeowners trade up and benefit the‍ upper end of the​ market. However, sales of affordable homes are constrained ⁢by the lack of inventory,” explained Lawrence⁣ Yun, NAR’s chief economist.

The Midwest proved to be the strongest performing region in August, attributed to its ⁣more affordable market conditions. ⁤Median home prices in the Midwest were 22% below the⁢ national median price.

Supply, a key⁤ factor in the​ current market, experienced a shift.After increasing⁢ earlier in the year, inventory fell 1.3% in August from July,although it remains 11.7% higher than in August of⁢ the previous ​year. This marked the first ⁢monthly decline in supply since⁤ the beginning of the year.Sellers, responding to​ softening prices and elevated mortgage rates, are either‍ withdrawing ⁣listings or delaying them. The available supply represents 4.6 months, considered a lean market.

the limited supply is contributing to continued price growth.⁣ The median existing-home price in August was $422,600, ‌a 2% increase from a year ago, marking the 26th consecutive month of annual⁤ price gains.

Homes are taking ⁣longer to sell,averaging 31 days on ​the market in August,up from‍ 26‍ days in August 2024. first-time homebuyers represent a historically low 28%​ of sales, while all-cash buyers account for 28% of transactions, up from 26% a year ago.

September 26, 2025 0 comments
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World

Single-Family Rent Growth Slows Amid Consumer Struggles

by Priya Shah – Business Editor September 23, 2025
written by Priya Shah – Business Editor

Single-Family Rent Growth Slows, Signaling Potential Shift in Market Dynamics

Recent data indicates a slowdown in single-family ⁣home rent growth, ⁣potentially reflecting increasing financial ⁢pressures on consumers. According to ‌cotality, single-family rent prices ⁢in July⁣ increased 2.3% year-over-year, a deceleration from ‌the 3.1% average rise observed in july 2023. This marks a fall below the lower end of the 10-year average range of pre-pandemic ‍growth.

Molly ‌Boesel, senior principal economist at Cotality, ​noted ⁤the‍ weakening trend,⁤ stating, “After a strong start to the year,‍ single-family rent growth is​ clearly losing steam. In July, we broadly saw weakening⁤ in annual⁢ single-family rent growth across metro areas and price tiers.” monthly growth in July was just ​0.2% higher than⁤ in June, substantially ​lower than the ancient⁢ July average of 0.7%.

While most major metropolitan areas are experiencing ⁢this cooling, ⁣Chicago is an exception, leading the‌ nation ⁢with 5.1% rent growth, driven⁤ by tight inventory and consistent demand. New York City followed with 3.7% growth, ⁢with Philadelphia, Washington ⁤D.C., and los Angeles rounding out the top​ five. In‍ contrast, Dallas and Miami showed the slowest growth, with Miami experiencing no rent growth at all – a stark contrast to the‌ 40% annual increase seen in 2022 due to pandemic-related ⁤migration.

The slowdown extends​ across all price ​points. high-end​ properties saw a 2.9% annual increase, down from 3.2% last July, while low-end rents rose 1.6% annually, a decrease from 2.8% ⁤in July 2023.

This shift comes after‍ a period where single-family rentals outperformed apartment rentals,⁤ largely ​due to ‌a surge in multifamily supply ⁤and high ⁣for-sale home‌ prices. Many ‌families,‌ traditionally homebuyers, opted for single-family rentals in desirable school districts.

Single-family rental REITs, including Invitation Homes and American Homes 4 Rent, have responded to this demand by developing⁣ more rental communities.⁤ It remains to be seen whether ⁤the recent weakening⁢ in ⁤rent​ growth will lead these REITs to adjust their‌ building strategies. Recent data from Parcl⁣ Labs indicates that these large REITs were already ⁢shifting their focus, selling more individual properties to consolidate holdings into larger, purpose-built rental communities.

To receive future editions of this real⁢ estate ‌market analysis,sign up for ​CNBC’s Property Play newsletter: https://www.cnbc.com/lander?id=propertyplay-newsletter

September 23, 2025 0 comments
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World

Student Housing Market Slows: Affordability Drives Demand

by Priya Shah – Business Editor September 23, 2025
written by Priya Shah – Business Editor

summary​ of the CNBC Article on Student Housing:

This CNBC article focuses ⁤on⁤ the current state of the⁤ student⁢ housing market, with⁤ insights from⁢ Scion CEO, Robert Bronstein. HereS a breakdown of the ⁣key takeaways:

Key Trends:

* Shift to Affordability: Students ‌adn parents are prioritizing cost savings over luxury‌ amenities. ‌ Even those ⁤who coudl afford premium ‌options are ⁢opting for less expensive, slightly‌ older properties.Features like hot tubs ⁤and golf simulators are losing their appeal.
* Demand for Functionality: ‍Students​ now value practical spaces ⁤like co-working ‍areas and remote interview rooms more than ⁢entertainment-focused amenities.
* Growth in‍ Large⁤ Public​ Universities: Investment is increasingly focused on large, flagship public universities experiencing⁢ record enrollment growth. These schools can’t keep up with housing ⁤demand.
* Southeastern & Big Ten Conferences Hotspots: The Southeastern Conference (SEC) remains the ⁤most active area for student ⁢housing investment, but the big ⁣Ten is gaining momentum.
* Decreased New Progress: Higher ⁣construction and capital costs are slowing⁣ down new development, which will likely increase the⁤ value of existing properties.

Scion’s Strategy:

* Focus on the Middle ​Market: Scion acquires properties near large universities ⁣(e.g., ⁣University of Florida, Alabama, Texas A&M).
* Scale is Key: They are actively⁢ acquiring properties and aiming for meaningful​ scale within ‌target markets (thousands of beds,⁢ multiple assets) ⁢to achieve operating leverage.
* Bullish Outlook: Bronstein⁤ is optimistic about the market due to ‌enrollment growth at flagship universities‍ and the slowdown ‌in new construction.

Market Outlook (Walker ‍& Dunlop report):

* Rebounding Market: The⁤ student housing market is rebounding as interest rates stabilize and institutional capital returns.
* Functionality ​& Affordability: The report ⁢confirms the ⁤shift away from luxury amenities ⁣towards practicality ​and affordability.

In essence, the article ⁢paints a picture of a student housing⁤ market undergoing‌ a⁣ correction, driven by economic⁢ pressures and ‍changing student preferences. The focus is shifting from “luxury living” to “practical and ⁣affordable” housing near thriving, large universities.

September 23, 2025 0 comments
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