The Growing Rift Between Commercial and Residential Real Estate
In today's edition of Above the Line, we examine the growing divide between commercial and residential real estate markets. We see side-by-side, an optimistic +40% inventory forecast in the US residential housing market, while China is pulling the plug on liquidity for the majority of its real estate developers.
Let's dive in.
Rising Housing Inventory
Yahoo Finance
As mortgage rates defy expectations by climbing, housing inventory in the U.S. is projected to increase significantly. Altos Research indicates a potential 40% growth in inventory by mid-2024, challenging the market's previous dynamics.
China's Tough Love for Real Estate Developers
Fortune
In an assertive move, China's housing minister announces a no-bailout policy for struggling real estate developers, signaling a survival-of-the-fittest approach in a sector that's vital to the country's economy.
San Francisco's Innovative Conversion of Office Spaces
Bloomberg
Amidst a record commercial vacancy rate, San Francisco introduces Proposition C, offering tax incentives for converting commercial spaces into residential units, aiming to revitalize the downtown area.