Latest Trends in the U.S. Housing Market: Rising Rents, Stable Exchange Rates, and Stricter Mortgage Rules

Housing Rents in Major Metro Areas Continue to Rise for 46 Weeks

According to the U.S. National Housing Data Agency, rental prices in major metropolitan areas have been climbing for 46 consecutive weeks as of last month. Over the past year, the cumulative weekly increase in rent prices has been about 2.3%, slightly surpassing the Consumer Price Index (CPI) inflation rate of 2.1%. In cities like New York and Los Angeles, rent hikes are especially noticeable, reaching around 3.7%.

Real estate analysts project that rent growth in these areas will continue, with some estimates suggesting increases of 3.8% nationwide and up to 4.7% in major cities like San Francisco and Chicago. Factors such as limited new apartment completions, concerns over property taxes for multiple homeowners, and land use regulations are expected to keep rental markets tight and prices rising.

Large-Scale Apartment Completions Expected This Spring

• Ten new apartment complexes with over 500 units each
• Total of approximately 11,600 new units scheduled for move-in

This influx of new rental units is likely to influence the market this spring. However, given the overall tight supply, the impact may be limited, and rental prices could remain elevated.

Stable USD Exchange Rate at Around 1,400 Yen and Foreign Reserves Debate

The dollar-yen exchange rate is expected to stay steady around 1,400 yen in the near term. While Japan’s foreign exchange reserves rank among the top 10 globally, discussions about increasing foreign currency holdings are gaining momentum.

With institutional investors like pension funds earning around $260 billion from domestic stock investments, fluctuations in the exchange rate could influence economic growth forecasts and investment strategies.

Stricter Mortgage Lending Standards in the U.S.

Mortgage lenders are tightening borrowing criteria as risk weights for home loans are increased from 20% to higher levels. This move aims to stabilize the housing market and prevent overheating. As a result, qualifying for a mortgage may become more challenging for many prospective buyers.

Coupled with the ongoing high exchange rate, these tighter lending standards could add pressure on household debt management and affordability.

Falling Unemployment Claims in the U.S. and Global Economic Signals

U.S. unemployment benefit claims have dropped to about 199,000, the lowest since late November. This decline signals a resilient labor market and is seen as a positive sign for global economic recovery, which could boost U.S. exports and international trade.

Additionally, the introduction of new regulations on AI-generated content, including mandatory watermarks, is making headlines as part of the world’s first “AI Basic Law,” highlighting ongoing efforts to regulate emerging technologies.

HomeGoods Store Closures and Market Restructuring

This month, five HomeGoods stores are closing across different regions. The closures are expected to inconvenience local shoppers and reflect ongoing restructuring within the retail sector, as companies adapt to changing consumer habits and economic conditions.