1. New Yorkers Forced to Choose Smaller Apartments
2. U.S. Mortgage Rates Fall for Second Consecutive Week
3. Private Equity Firms Hold $722 Billion in Dry Powder
4. Malibu Mansion Aims for Record $300 Million Asking Price
5. Amazon Tests Ultra-Fast Same-Day Delivery
6. Microsoft and Palantir Form Strategic Partnership
7. Blackstone Sells Apartment Portfolio for $900 Million
1. New Yorkers Forced to Choose Smaller Apartments
A survey by real estate brokerage Douglas Elliman found that the average size of Manhattan apartments rented in July was 945 square feet, a 9.5% decrease year-over-year. Rent per square foot rose 0.3% to $85.03.
Compared to last summer, New Yorkers are having to sacrifice living space in order to cope with soaring living costs and persistently high rents. The median rent for new leases in July was $4,300, just 2.3% below the record set in 2023.
A total of 7,712 new leases were signed in July, surging 54% year-over-year, driven by a 44% increase in available inventory.
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2. U.S. Mortgage Rates Fall for Second Consecutive Week
Freddie Mac announced today that the average 30-year fixed mortgage rate dropped from 6.73% last week to 6.47%—the lowest since May 2023—providing a vital window of relief for homebuyers.
The Federal Reserve is likely to cut interest rates for the first time in September, which would push mortgage rates even lower. Lower rates boost purchasing power, prompting some buyers to re-enter the market, while those who bought at peak rates may consider refinancing.
After surpassing 7% earlier this year, mortgage rates have steadily declined, reviving activity in the housing market.
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3. Private Equity Firms Hold $722 Billion in Dry Powder
According to Bloomberg data, the seven largest publicly traded alternative asset managers in the U.S. collectively hold $722 billion in undeployed capital—up 9% year-over-year.
KKR CEO Scott Nuttall believes that macroeconomic, inflationary, and interest rate conditions have improved significantly, opening up the transaction market once again.
Over the past two years, deal activity was sparse due to high interest rates reducing buyers’ purchasing power and limiting investment opportunities. As the Fed is expected to cut rates soon, these asset managers will be better positioned to deploy capital.
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4. Malibu Mansion Aims for Record $300 Million Asking Price
In June, a 9.5-acre oceanfront estate in California sold for $210 million, setting a state record.
However, realtor Kurt Rappaport, who handled that transaction, says he is now preparing to list another Malibu estate, with a target price of a jaw-dropping $300 million.
With 20 miles of Pacific coastline, Malibu is a global hotspot for ultra-high-net-worth individuals. While supply of oceanfront homes is limited, the steady influx of wealthy buyers has kept local prices at the top of the market.
Note: Malibu is prone to wildfires; a blaze six years ago destroyed more than 400 homes.
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5. Amazon Tests Ultra-Fast Same-Day Delivery
According to sources, Amazon’s Delivery Service Partner program has rolled out a new fleet of Kia Soul vehicles to enhance same-day delivery speeds.
Although smaller than trucks and unable to carry 200 packages, the Souls can hold around 50 packages. Amazon’s outsourced drivers can typically complete deliveries in 4–5 hours, significantly improving turnaround times.
CEO Andy Jassy has prioritized logistics efficiency, doubling the network’s size since the pandemic. While building new facilities, Amazon has also shut down warehouses that are too far from customers.
Amazon said the number of employees handling each package has dropped, helping boost speed.
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6. Microsoft and Palantir Form Strategic Partnership
Microsoft and Palantir Technologies jointly announced today that they will integrate cloud and AI tools for government use and sell software capable of handling top-secret data to the U.S. Department of Defense and FBI.
Under the agreement, Palantir’s products will be integrated into Microsoft’s Azure cloud services, incorporating OpenAI’s technology as well.
Microsoft’s Azure Government Top Secret operates in a fully air-gapped environment, designed to store the most sensitive government data.
Meanwhile, Palantir serves dozens of government agencies across the U.S. and allied nations. Its AI software relies on large language models developed by OpenAI.
The companies will offer training programs to guide government agencies and sell the joint software solution.
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7. Blackstone Sells Apartment Portfolio for $900 Million
Yesterday, apartment owner Equity Residential announced that it has agreed to acquire 11 apartment properties from Blackstone for $964 million. The portfolio spans cities such as Atlanta, Denver, and Dallas.
This acquisition will expand Equity Residential’s footprint in major U.S. cities; it currently owns over 300 properties in New York, Washington, and San Francisco.
Last week, Equity CEO Mark Parrell said the rental apartment market is cooling due to increasing supply. However, as construction slows, occupancy rates are expected to gradually recover over the next few years.
Compared to the end of 2023, the number of sellers trying to offload real estate has jumped 2–3 times.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.