What’s in The Shaker today:

• 💪 Buyers Gain $40K in Buying Power

• 💎 Tiny NYC Apt Goes Luxe

• ⚡️ Austin's Rapid Home Build

• 👀 Housing Shortage Lingers

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Buyers Gain $40K in Buying Power

The recent dip in mortgage rates has increased the average U.S. homebuyer's purchasing power by $40,000, enabling a budget of $3,000 a month to stretch to a $453,000 home.

• Mortgage rates have cooled to around 6.7%, allowing buyers to afford more expensive homes compared to when rates were at 7.8%.

• The median U.S. home price stands at $363,000, with current rates translating to a monthly mortgage payment of $2,545, down from $2,713.

• Despite the easing of rates, experts caution against trying to time the market, emphasizing that the era of low-single digit mortgage rates may be over.

Tiny NYC Apt Goes Luxe

Madison Malaga turned her sister Rylee's cramped 200-square-foot New York studio into a luxurious living space, showcasing the transformation in a viral TikTok video.

• The makeover, a birthday surprise for Rylee, took eight hours and was achieved with thrifty decor solutions, including repurposed wood from the trash.

• Creative hacks included covering gray floors, using a scrap piece of wood for Roman shades due to the absence of a tape measure, and making art from thrifted book pages.

• The space was ingeniously divided into separate living and bedroom areas with a flat sheet on a track system, maximizing the tiny square footage without sacrificing style.

Austin's Rapid Home Build

Austin-based Onx Inc. is leveraging an innovative construction method to swiftly develop over 900 homes in Georgetown, significantly accelerating the traditional building timeline.

• Utilizing a $33.5 million loan from Aztec Group, Onx Inc. is employing its unique X+ construction method, manufacturing key home components like rooms and walls offsite to expedite assembly.

• The Rocking Wilco development, spanning 300 acres, aims to complete homes in under 60 days, a stark contrast to the usual six to nine months.

• The first phase includes 141 homes, with the entire project expected to offer competitively priced residences around the $500,000 mark, catering to first-time and move-up buyers.

Housing Shortage Lingers

Despite a strong year for new construction anticipated in 2024, America's housing shortage is expected to persist, with the deficit remaining in the millions.

• Even with an uptick in multifamily and single-family home completions in 2023, the total shortfall is projected to stay between 1.5 million to 2 million units.

• The current housing inventory equates to only 3.2 months' supply, far below the six months considered balanced by economists, indicating a prolonged recovery period for the housing market.

• Years of underbuilding post-Great Financial Crisis have exacerbated the shortage, with the average annual single-family home completions dropping significantly from historical norms.

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