Homeownership among Gen Zers stagnates; Japan's Sekisui to buy MDC for $4.9B

S&P Global Market Intelligence offers our top picks of real estate news stories published throughout the week.

Homeownership among adult Gen Zers barely moved in 2023 amid high home prices and mortgage rates, Redfin said in a report. The rate of homeownership among adults in that age bracket was 26.3% last year, compared to 26.2% a year earlier.

"[I]t was particularly difficult for America's youngest homebuyers, many of whom are just starting their careers and don't have significant savings or wealth from the sale of a previous home," Redfin said. Mortgage rates touched 8% at one point last year, the first time hitting those levels since 2000.

Homeownership rose to 54.8% for Millennials and 72% for Generation X, while the rate for baby boomers was little changed.

CHART OF THE WEEK: Nearly half of US equity REITs up dividends in 2023

⮞ Nearly half of all US-based publicly traded real estate investment trusts increased their dividend payouts in 2023.

⮞ Nine out of 11 industrial REITs announced an increase in dividends during the year, the highest proportion relative to the sector's total.

⮞ In Canada, 12 REITs declared higher dividends in 2023, half of which came from the residential sector, while four retail REITs increased payouts.

Top acquisition deals

– Colorado homebuilder M.D.C. Holdings Inc. agreed to be acquired by Japanese peer Sekisui House Ltd. in an all-cash deal valued at $4.9 billion. MDC shareholders will receive $63 per share, which reflects a 19% premium to MDC's closing stock price Jan. 17.

– Brookfield Asset Management Ltd. will exit its majority investment in the Ritz-Carlton Key Biscayne luxury hotel in South Florida through a sale to Gencom Group, Bloomberg News reported, citing people familiar with the deal. The transaction values the property at more than $400 million. Gencom is a minority shareholder in the property, according to the report.

– Shipping company FedEx Corp. paid $248 million to buy a portion of the 1.8 million-square-foot Sunset Industrial Park in Brooklyn, NY, the New York Business Journal reported, citing city records. An affiliate company of Bridge Development was the seller.

– A joint venture of Tishman Speyer Properties LP and Mitsui Fudosan America acquired a 32-acre industrial site in Irvine, Calif., for $145.9 million from FivePoint Holdings, Commercial Observer reported, citing records. Tishman plans to develop four buildings spanning roughly 600,000 square feet.

Banks sign office leases

– Bank of America Corp. signed a 15-year lease for 550,000 square feet across 21 floors at the Newport Tower in Jersey City, NJ, Commercial Observer reported. BGO owns the building located at 525 Washington Blvd. The report said the deal represents the only new lease over 500,000 square feet signed in New Jersey in the last decade.

– Wells Fargo & Co. signed a lease for 44,258 square feet at KBS Realty Advisors LLC's City View office building in San Antonio, the San Antonio Business Journal reported. The lease is part of the bank's plan to consolidate its office footprint, according to the report.

US hotel performance in 2023

Occupancy, average daily rate and revenue per available room of US hotels went up in 2023 compared to 2022, according to the latest data from STR.

Occupancy closed at 63%, a gain of 0.6% from the previous year. This was the highest level since 2019, according to the data. Average daily rate rose 4.3% year over year to $155.62, while revenue per available room jumped 4.9% to $97.97.

Among the top 25 markets, New York City logged the highest levels across the three key metrics.

See key people moves in North America real estate.

US REIT average short interest decreases in December 2023

REIT Replay: REIT share prices tick up during week ended Jan. 12