US Real Estate Sector NAICS 531

Sep 19, 2025 - Mortgage Rates Hit 11-Month Low

• The average 30-year mortgage rate was the lowest in nearly a year in the second week of September, increasing buying power for would-be homeowners, but headwinds for a housing recovery remain, according to The Wall Street Journal. The week of September 18, the weekly average for a 30-year fixed-rate mortgage was 6.26%, down significantly from 7% at the start of 2025, and marking the lowest rate since October 2024, according to Freddie Mac. Industry insiders suggest the frozen housing market may begin to thaw when rates are consistently below 6%, a financial and psychological signpost for many. However, affordability remains a challenge as home prices are about 50% higher than in 2019. Insurance and property tax costs are also elevated. Signs of a slower labor market may also give some potential buyers pause.
• RealPage, a software firm serving 24 million rental units globally, is pushing back against mounting legal and regulatory scrutiny over its AI Revenue Management platform, according to Bisnow. Accused by the US Department of Justice and 10 state attorneys general of enabling rent collusion among landlords, RealPage faces a federal antitrust suit and over 30 consolidated civil cases. Some local governments have imposed ordinances banning algorithmic rent-setting, prompting RealPage to adjust its tools and challenge some laws in court. The company denies facilitating price-fixing, arguing its software merely offers rent suggestions. Despite settlements with major landlords and growing legislative pressure, no court has ruled definitively on the merits of the claims. RealPage maintains that its platform is lawful and beneficial, signaling readiness to litigate and defend its practices amid a patchwork of mounting regulations.

• In August, the US office vacancy rate was 19.4%, unchanged from July but up 130 basis points compared to a year earlier, according to real estate software firm Yardi Matrix. Remote work continues to put downward pressure on demand for office space, especially in central business districts. Low vacancy is also reducing property valuations. In 2021, about 20% of office property transactions were sold at a discount. As of July 2025, about 46% of office property transactions were discounted. Cities with the highest levels of discounted transactions include Houston (69%), Manhattan (64%), Washington, DC (64%), and Dallas (61%).
• Arkansas-based department store company Dillard’s, with a partner, recently bought a 47-year-old mall in Longview, Texas, defying a trend of retailers unloading real estate, according to The Wall Street Journal. The move may have been a defensive one, according to a Dillard’s executive. In recent years, investors have snapped up several malls on the cheap as demand has shifted online and to discount and specialty retailers. Some new mall owners have allowed properties to fall into disrepair, and some cities have sued mall owners for not properly maintaining properties while continuing to collect rent. Smaller mall tenants often can relocate if the property isn’t cared for. However, department stores usually own the space they occupy in malls, exposing them to potential bad-faith mall owners.