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Today: Starter home inventory improved nationally since 2022 but the Northeast saw 12.6% price increases, housing starts surged 19% driven entirely by multifamily (single-family flat), and housing costs now rank as the top political issue for voters under 35.
Housing starts jumped 19% in June, but the entire gain came from multifamily construction while single-family starts remained flat. Housing starts data shows the builders are betting on rental demand while homeownership barriers remain high. Columbia agents: this signals continued competition for SFR inventory, with multifamily projects targeting USC student housing and Fort Jackson demand. Watch for new apartment complexes near campus and in the Vista to compete with traditional rental SFR.
Starter home conditions are improving, but unevenly. Realtor.com data shows there are 220,000 more starter homes nationally since 2022 and prices dropped 4.2%, but the South drove nearly all the gains with 170,000 new affordable listings from Texas, Florida, and the Carolinas. The typical starter home now costs $344,000, up from $256,000 in 2019. For Columbia buyers, qualifying requires a household income around $78,000, up from $43,000 in 2019. Contact first-time buyers who've been priced out: the South Carolina market is recovering faster than the Northeast or Midwest, and inventory is expanding.
Housing costs have become the top political issue for voters aged 18-34, a CNBC survey found, ranking higher than food costs or protecting democracy. Forty-nine percent of renter households spend more than 30% of their income on housing, with 12.1 million households paying over half. For Columbia agents working with USC students, recent grads, or Fort Jackson families: this isn't abstract, it's a political mandate. Bipartisan housing legislation passed Congress in June despite presidential ambivalence. Expect pressure on SCREC for faster approval processes and zoning reform to increase supply.
Industrial outdoor storage (IOS) and advanced manufacturing are outperforming traditional logistics, according to Dedeaux Properties CEO Brett Dedeaux. While California industrial vacancy remains elevated, demand from advanced manufacturing and tenant interest in buying (rather than leasing) has driven recovery. Columbia applications: the Midlands has manufacturing growth from BMW suppliers and logistics tied to the Port of Charleston. Watch for industrial tenants looking to buy warehouses instead of renewing leases. Cap rate compression will follow if national buyers enter the Columbia market for owner-user deals.
Special servicing platforms launched by RXR, SL Green, and Ares Management are creating potential conflicts of interest in distressed CRE, Commercial Observer reports. These owner-servicers have visibility into competitors' distressed assets. For Columbia investors tracking distressed multifamily or retail: understand who controls the special servicing if you're evaluating a purchase from a CMBS pool. Request documentation on whether the servicer has affiliated funds bidding.
Finance of America is pushing second-lien reverse mortgages to allow seniors to tap home equity while keeping low-rate first liens, HousingWire reports. FOA launched HomeSafe Second in four new states and leads HECM endorsements nationally with nearly 2,500 in the first half of 2026. Columbia property managers: seniors aging in place with HECM or second-lien products are less likely to downsize or sell, constraining SFR inventory. Offer partnership referrals to reverse mortgage lenders for aging homeowner clients who need cash flow without selling.
Democrats hold a 38% to 32% advantage on housing policy in the CNBC poll, with 53% of voters who prioritize housing saying Democrats would do a better job. Bipartisan housing legislation became law in early July without President Trump's signature after he canceled a signing ceremony. For Columbia agents: zoning reform, supply expansion, and private equity restrictions are on the table. Track SCREC bulletins for new disclosure requirements tied to federal housing bills. Compliance changes are coming.
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