RCLCO Real Estate Consulting

I had a lot to say about the current real estate job market and the continued hesitancy in expanding teams, particularly at the senior levels. But the end of the tunnel seems closer than ever before, and I'm encouraged at the number of companies turning to RCLCO Real Estate Consulting for strategic and organizational planning to ensure they are ready for the cycle's upswing.

Proud to announce that Pacaso homes are not just redefining co-ownership—they’re outperforming the luxury home market! The latest RCLCO Real Estate Consulting analysis shows Pacaso shares have appreciated nearly 10% annually, compared to just 4.9% for traditional luxury homes in key markets like Napa-Sonoma, Malibu, and Vail. It’s clear: co-ownership with Pacaso is delivering incredible value and equity for owners. And with 3 out of 4 resellers looking to co-own again, the demand for our homes remains stronger than ever. Read the report: https://lnkd.in/gnWZTGij

🌊 How Changing Weather Patterns are Influencing Property Values The increasing frequency and severity of billion-dollar climate-related disasters has many implications for real estate, not the least of which is the impact on property values. In the 1980s, there were an average of 3 such events annually, but in 2023, we saw 28. This shift has real estate investors giving greater priority to consideration of climate risks like floods, hurricanes, and wildfires when evaluating property values. The real estate impacts are particularly clear in states like Florida and California, where the challenges are already being felt. In Florida, rising sea levels and coastal flooding have led to a $5 billion drop in property values in certain areas, and it’s estimated that this could escalate to an $80 billion loss over the next 30 years. With 22% of Florida’s GDP and 30% of local tax revenue tied to real estate, declining property values could have widespread economic consequences, especially in Miami-Dade, Broward, and Palm Beach counties. California faces a different but equally challenging situation with wildfires. Proximity to recent fires is negatively impacting property values, as homes closer to past fires tend to have lower values. From 1987 to 2022, over 300,000 fire incidents were recorded, with the size and intensity of these fires increasing over time. The impact of these disasters is not just limited to immediate destruction but also has long-term implications for property values. As climate-related risks continue to rise, understanding and addressing these effects is crucial for real estate professionals, policymakers, and property owners. #ClimateChange #PropertyValues #SustainableFuture #RealEstate #HousingMarket #RCLCO

🏠 New Home Sales "Up" The strong momentum in new home sales is a promising sign for the housing market and the broader economy. The latest data from the Census Bureau shows that new home sales jumped by an impressive 10.6% in July, reaching a seasonally adjusted annual rate (SAAR) of 739,000. On a year-over-year basis, new home sales have risen by 5.6%. New home sales currently make up about 15% of total home sales. Despite the increase in sales, new home prices have remained relatively steady. The median new home price rose 3.1% in July to $430,000, but prices are still down 1.4% compared to last year, due to builders offering incentives, and a greater share of smaller homes in the mix. 🚀 Meanwhile the Federal Reserve is signaling a shift in monetary policy, hinting that lower interest rates could be on the horizon. Mortgage rates, which are closely tied to the Fed's interest rate decisions, have already seen some relief as bond yields dropped. A potential rate cut could further ease mortgage rates, making home buying more affordable and potentially revitalizing a housing market that has been under pressure from high borrowing costs. #RCLCO #HousingMarket #NewHomeSales #RealEstate #EconomicGrowth #HomeBuilders #MarketTrends #FederalReserve #InterestRates #Economy #Inflation #EconomicGrowth

🏘️ The conventional single-family subdivision remains a dominant form of residential development in the U.S., but its market share is gradually being challenged by other types of residential developments. Research consistently demonstrates that residential properties within New Urbanist and Traditional Neighborhood Development (TND) communities command a price premium over those in conventional suburban developments. Commercial properties and rental units in these communities also tend to outperform their suburban counterparts. Factors such as higher foot traffic, vibrant community engagement, and well-designed public spaces contribute to lower vacancy rates and higher rental prices in New Urbanist developments. These communities offer convenient access to shops, restaurants, parks, and other amenities, thanks to the thoughtful integration of residential, commercial, and office spaces. This proximity not only enhances property values but also meets residents' needs more effectively. Additionally, public spaces like town centers, parks, and plazas foster social interaction and build a stronger sense of community—a feature that, while also present in some non-TND master-planned communities, is a hallmark of New Urbanist design. Despite their proven ability to generate higher property values, the adoption of TND developments remains limited. Zoning regulations often favor car-oriented developments, and capital providers tend to view conventional projects as lower-risk investments. The higher initial costs associated with TND developments also pose a barrier to their widespread adoption. Many people still prioritize the privacy, space, and perceived safety of suburban neighborhoods, especially families with children, who often prefer the large backyards and similar single-family homes typical of these areas. It’s important to note that the typical suburban family comprises approximately 35% of U.S. households. The shifting demographic makeup of U.S. households suggests a future where housing needs are more varied and complex. Developers and policymakers will need to consider these trends as they plan for the housing of tomorrow, ensuring that it meets the needs of a changing population. This may involve rethinking conventional housing models and embracing new designs and community structures that cater to the diverse lifestyles and preferences of modern households. Family households—those with at least one person related to the householder by birth, marriage, or adoption—are gradually declining as a percentage of total households. Non-family households, which include individuals living alone or with non-relatives, are on the rise. With the growth of smaller households, there will be rising demand for smaller, more efficient housing units -- apartments, townhomes, and smaller single-family homes designed to meet the needs of singles, couples, and older adults. #Housing #RealEstate #RCLCO #TND #NewUrbanism

Check out #RCLCO's recent #collaboration with Pacaso below with insight from Principal Karl Pischke:

Read #RCLCO's Managing Director Charlie Hewlett's thoughts on the RCLCO mid-year sentiment poll results regarding the presidential candidate's impact on the real estate market featured in PERE's newest article: https://lnkd.in/dUyVU6jJ

Paris 2024 is setting a new standard for sports districts, and we at RCLCO are proud to have contributed to the conversation. Our study on sports district development (https://lnkd.in/eKS8H2nc) highlights how strategic planning can create vibrant, lasting communities around major events like the Olympics! #Paris2024 #Olympics #SportDistricts #RCLCO

Our community, Mirada, ranked 9th among the 50 Top-Selling Master-Planned Communities for the first half of 2024 by RCLCO Real Estate Consulting! Some other key insights from report: • New home sales in the top-selling communities have maintained a robust pace, mirroring the performance seen in the first half of 2023. • Despite a 1.1% decline in single-family home sales nationally through the first half of 2024 and a 7.4% drop in June, master-planned communities have demonstrated resilience and outperformed the broader market. These thriving communities continue to attract new homeowners, proving their enduring appeal and value. Read more here: https://lnkd.in/dVc7dwFz

Congratulations to RCLCO's own Joshua A. Boren and Erin Talkington in being recognized in Sports Business Journal's list of mixed-use development Power Players!