Property Taxes - NJ Tops at 2.08%

Good morning, Dwellers! Explore September’s highlights with Dwellings Digest! Get the scoop on 2024 U.S. Property Taxes—New Jersey tops the list at 2.08%, while Hawaii is lowest at 0.26%. Discover how Passive House Standards cut energy costs by up to 40%, and see the Florida and Texas condo market trends amid rising inventories and HOA fees. Check out the latest on framing lumber prices and the growing senior living demand in St. Louis. Don’t miss the documentary The Promised Land, spotlighting veteran homelessness in L.A.

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Quote of the day - In real estate, it’s not just about buying a property; it’s about buying a lifestyle.

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Average going rates as of Sep 4th 2024

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🏛️ Economic Indicator

Top U.S Property Taxes by State and County, 2024

• Property taxes made up 30% of state and local tax collections in the U.S. for fiscal year 2021, highlighting their critical role in funding local services like schools and emergency response.

• New Jersey leads with the highest effective property tax rate at 2.08%, followed closely by Illinois at 1.95%, while Hawaii boasts the lowest rate at just 0.26%, offering stark contrasts in tax burdens across the country.

• Median property tax payments exceed $10,000 in 15 U.S. counties, with areas near New York City, like Bergen and Essex in New Jersey, topping the list, reflecting higher home values and local government costs.

Full List by State Here

🎢 Impact on Real Estate

How Passive House Standards Lower Energy Costs and Boost Sustainability

• Passive House standards reduce energy costs by up to 40% for tenants, making it a vital tool in affordable housing projects, particularly in regions with extreme weather conditions.

• Building to Passive House standards costs only 3%-5% more initially, yet offers long-term savings through reduced energy expenses and lower maintenance costs, appealing to both developers and tenants.

• The largest Passive House project in the U.S., Sendero Verde in NYC, provides 709 energy-efficient units, showcasing the scalability of this sustainable approach in urban affordable housing.

Read How its Implemented

🎙️ RE Spotlight

Florida and Texas Condo Supply is Piling Up As Sales Slow Amid High HOA, Insurance Costs.

• Condo inventories are surging in major Florida and Texas metros like Tampa (up 57.2%) and Houston (up 35.9%), while pending sales are plummeting due to high HOA fees and insurance costs, leading to price declines.

• HOA fees in Florida have skyrocketed over 15% in cities like Tampa and Orlando, driven by increased maintenance requirements post-Surfside condo collapse and rising insurance premiums, making condos less appealing to buyers.

• Investors are backing off from condo purchases, with a 3% drop in investor activity nationwide, particularly in Florida, where many are now offloading previously bought condos as rising costs and natural disaster risks make ownership less viable.

Condo market summary - 50 most populous U.S. metros

🪵 RE Construction

U.S. Framing Lumber Prices Rise for Seventh Consecutive Week Amid Market Volatility

• Framing lumber prices increased by 0.8% during the week ending Aug. 30, marking the seventh consecutive weekly gain, though prices remain 7.4% lower than last year after reaching a low in April 2020.

• The Random Lengths framing lumber composite price has risen 6.1% in the past month, while lumber futures fell 2.6% over the past week, reflecting ongoing market uncertainty and fluctuations.

• Softwood lumber costs directly impact the price of new homes, as builders face delayed price relief despite lumber price drops, with final home prices rising by nearly 15% above the builder’s cost due to additional factors like interest and broker fees.

Framing Lumber Prices

🏕️ Niche-RE

Rising Demand for Senior Living in St. Louis: Inside The Lumiere of Chesterfield’s Cutting-Edge Care

• Senior living demand in St. Louis is rising rapidly as the 65+ population grew the fastest between 2010 and 2022, highlighting the region's aging demographic and need for supportive retirement communities.

• The Lumiere of Chesterfield offers a $55 million luxury experience with 96 independent living units, 37 assisted living units, and 17 memory care apartments, all designed to enhance the quality of life through biophilic design and wellness-focused amenities.

• Tutera’s Thrive in Courtyard Memory Care program integrates personalized care and holistic wellness, providing seniors with memory loss conditions a compassionate and enriching environment that supports their physical, emotional, and social well-being.

Trends Impacting the Sector

🎖️Veterans Row

"The Promised Land" – Veteran Homelessness in L.A.

A Stark Reality:
L.A.’s “Veterans Row,” a collection of tents adorned with American flags, vividly illustrates the city’s veteran homelessness crisis, with an estimated 4,000 unhoused veterans living on the streets. These tents are just steps away from the sprawling, underutilized West Los Angeles VA campus, which was originally designated for veteran housing but remains largely empty. This juxtaposition is central to The Promised Land, a documentary by Army veteran Rebecca Murga, which brings attention to this ongoing struggle.

Legal Battle & Policy Shifts:
The film’s release aligns with a class-action lawsuit filed by 14 veterans, demanding the VA deliver on its promise to build over 1,000 supportive housing units. Shortly after the documentary's screening, HUD changed a rule that previously disqualified some veterans from receiving housing assistance, counting their disability benefits as income. While the policy shift is a step forward, it hasn’t fully addressed the lack of available housing, and the lawsuit continues in court.

Heartfelt Stories:
The documentary follows veterans like Derek, who found temporary shelter in VA tiny homes during the pandemic but tragically died of an overdose shortly after securing permanent housing. His story, along with others featured in the film, highlights the personal toll of the housing crisis and the urgency for long-term solutions.

Ongoing Crisis:
Despite incremental progress, Murga’s documentary calls for deeper awareness of veteran homelessness. As the lawsuit moves forward, advocates emphasize that this issue is not just L.A.-based but part of a larger, national crisis requiring immediate action.

New doc follows vets fight for housing

🖼️ Chart-Tastic

And…that's a wrap on this edition!

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