Los Angeles will implement new rent-control limits in February, capping annual increases at 1% to 4% for most multifamily apartments. The new policy affects approximately 651,000 apartments, or three-fourths of L.A.’s multifamily housing stock. The average rent for a rent-controlled unit in Los Angeles is about $1,800, compared with $2,700 for market-rate units.
Spending on data-center construction looks poised to surpass office-building construction as soon as next year. Data centers yielded an 11.2% return last year. That was higher than every other sector, other than manufactured housing.
The share of first-time homebuyers has dropped to 21%, or half from what it was before the pandemic.
The latest Household Debt and Credit Report showed a $197 billion increase in total household debt during Q3, reaching a record $18.59 trillion. Mortgage debt, which represents the bulk of household debt, grew by $137 billion to $13.07 trillion. Non-housing debt also increased with credit card balances rising by $24 billion from the previous quarter to $1.23 trillion and student loan balances increasing by $15 billion to $1.65 trillion.
Gross domestic product rose at a seasonally and inflation-adjusted 4.3% annual rate for the July through September quarter. It was the highest growth rate in two years, and reflected robust spending by consumers on services like health care as well as spending on vehicles. Growth picked up from 3.8% in the previous quarter, and beat the 3.2% forecast.
Nearly 30 million households, or 54% of primary mortgage-holders, have mortgage rates at or below 4%. They were able to buy homes or refinance their mortgages when rates fell to 3% or lower in 2020 and 2021.
Affluent renters who may spend $20,000 or more a month on a luxury single-family home or apartment are increasingly customizing their new places—replacing lighting, adding home-office space or just painting and adding wallpaper, all in an effort to live in a space, albeit temporarily, that fits their design aesthetic and lifestyle. Many landlords are not only allowing these renovations, they’re actually encouraging them.
The unemployment rate for college-educated workers who are 25 or older increased to 2.9% from 2.5% a year earlier and college-educated workers’ perceived probability of job loss in the next year rose to 15% from 11% three years ago.
St. Paul’s strict 3% rent-control ordinance led to a 79% drop in apartment-building permits and an at least 6% decline in property values. Meanwhile, Minneapolis, without rent control, saw apartment permits rise nearly fourfold in early 2022 from the year before.
