Hello Brick Brief readers, 

Thank you for your continued support! Today we’re seeing rent-to-own trump homes proposal from homeowners to address affoordaiblity, value pressure deepening on middle income consumer, and data center 

🏠 Builders Pitch Rent-To-Own As Affordability Fix
National homebuilders are pitching a large-scale rent-to-own model where entry-level homes are sold to private investors and rented to future buyers with a portion of rent credited toward ownership, a proposal that could support up to ~1M homes and ~$250B of new supply. However, affordability relief from this approach may be limited, as national builders concentrate in overbuilt Sunbelt markets like Phoenix and Austin where inventory pressure is already weighing on prices, while the most acute affordability constraints persist in the Northeast due to zoning limits and scarce infill supply.

🍔 Value Pressure Deepens For Middle-Income Consumers
Middle- and lower-income consumers remain focused on value and essentials, as U.S. food and beverage companies warn of slowing volumes and shopper sentiment hits a decade low. Chipotle reported a 1.7% same-store sales decline in 2025 and is projecting flat same-store sales in 2026, as it focuses on operational improvements and new menu items rather than broad price discounting.

⚡ Data Center Buildout Spills Into Manufacturing And Hotels
The data center buildout is expanding beyond digital infrastructure and into the physical economy, driving new demand for both manufacturing capacity and temporary housing. Siemens Energy is planning a $1B U.S. manufacturing expansion focused on gas turbines and grid equipment to support AI-driven electricity demand, while worker influx tied to ~30 large data center projects is lifting hotel occupancy in remote build markets.

US government shutdown ends after Trump signs bipartisan funding deal – Agreement restores most federal operations through Sept. 30 but leaves DHS funded only through Feb. 13 (Bloomberg)

CRE deal volume fell 20% YoY in December – Full-year 2025 activity still rose 17% as capital concentrated in office trophy assets, multifamily, and data-center deals (CNBC)

Bipartisan bill targets housing near transit to ease affordability crunch – Proposal fast-tracks financing and approvals for affordable housing near transit hubs (Bisnow)

Keller Williams agrees to $20M settlement in homebuyer commission antitrust case – Brokerage becomes first defendant to resolve nationwide lawsuit alleging commission fixing, while agreeing to cooperate against rival firms and trade groups (Reuters)

Builders pitch ‘Trump Homes’ rent-to-own plan to tackle affordability – Proposal targets up to 1M entry-level homes funded by private investors, with rent credited toward ownership and ~$250B of potential new supply (Bloomberg)

Homebuilders are proposing a large-scale rent-to-own program that would sell entry-level homes to private investors who rent them to would-be buyers and credit a portion of monthly payments toward a down payment after several years.

One thing to note, however, is that national homebuilders tend to dominate certain Sunbelt markets such as Phoenix and Austin, where they are already grappling with overbuilt inventory that is putting downward pressure on prices. Unaffordable housing is more concentrated in the Northeast due to limited infill supply and strict zoning, so while a rent-to-own model may help affordability in parts of the Sunbelt, it does little to address the structural supply constraints driving prices in the most expensive markets.

US home price growth slows to 0.9% YoY in December 2025 – Midwest and Northeast markets outperform as the national housing market enters a rebalancing phase after years of rapid price gains (Cotality)

US homeownership rate edges up to 65.7% in Q4 2025 – Affordability constraints and limited supply continue to cap ownership gains (Redfin)

Apartment demand turned negative nationally in Q4 2025, but a handful of large metros held firm – New York absorbed ~4,300 units and Phoenix ~4,000 units, standing out as rare pockets of strength (RealPage)

Yardi Matrix lifts 2026–2028 U.S. multifamily completion forecasts – Resilient construction starts will keep supply elevated even as the under-construction pipeline begins to thin (IREI) 

Anthropic leases 420K SF at Divco West and Blackstone’s 300 Howard Street office building in San Francisco, CA – AI firm fully occupies the tower as tech-driven leasing accelerates across the city (TheRealDeal)

US industrial vacancy rate forecast to peak in 2026 – CoStar projects vacancies will keep rising as tenants shift from older facilities to newer product and pre-leasing remains uneven despite steady demand (CoStar)

Siemens Energy plans $1B US manufacturing expansion to meet data center power surge – Investment targets gas turbines and grid equipment across multiple states as AI-driven electricity demand is set to double by 2035 (Bloomberg)

US food and beverage giants warn of soft demand as shopper sentiment hits a decade low – Mondelez, Chipotle, and PepsiCo report slowing volumes, price cuts up to 15%, and strained low- and middle-income consumers even as overall spending holds up (FT)

Restaurants enter a 2026 value war for middle-income diners – Chains are pairing sharper pricing with limited-time innovation and clearer value positioning as consumers trade down to grocery and casual dining alternatives (Placerai)

Middle- and lower-income consumers remain focused on value and essentials, while high-end spending remains strong. This continues the barbell dynamic we saw in 2025 and keeps pressure on mid-tier brands and restaurants caught between discount players and premium concepts.

Texas weighs re-reviewing approved AI data center projects as grid strain mounts – ERCOT may reopen studies covering ~8.2 GW of demand and shift to batch approvals to manage the surge in hyperscale power loads without overtaxing the grid (Bloomberg)

AI’s power crunch is pushing data centers off Earth and into space – Orbital data centers could bypass land and grid limits, but cost, cooling, radiation, and latency remain major barriers (Bloomberg)

AI data center construction boosts hotel demand in remote markets – Worker influx tied to ~30 large AI infrastructure projects is lifting occupancy near major build sites (CoStar)

Life sciences real estate shows early recovery signs heading into 2026 – Vacancies dipped for the first time since 2022 as construction slowed sharply and funding activity rebounded in the second half of 2025 (ConnectCRE)

Chipotle shares fell ~6% despite beating Q4 earnings expectations after the company reported a fourth consecutive quarter of declining same-store sales, which fell 1.7% in 2025. For 2026, the company is projecting flat same-store sales growth and is focused on operational improvements and new menu items rather than discounts to bring customers back (CNBC)

Retailer Eddie Bauer plans third bankruptcy with 150+ store closures – Company is preparing a Chapter 11 filing as rising costs and tariffs pressure mall-based apparel brands (Bisnow)

CMBS delinquency rate rises to 7.47% entering 2026 as office distress hits record – Office delinquencies climbed to a new high of 12.34% (Trepp)

CGI Merchant Group loses 550 Biltmore office building in Coral Gables, FL after $61.3M foreclosure judgment – Secured Debt Investments will take control following loan default as the firm’s South Florida portfolio continues to unravel (TheRealDeal)

David Werner Real Estate and 601W buy Downtown Chicago office building at 175 West Jackson Boulevard from Brookfield Asset Management for $41M – Distressed sale prices 1.4M SF tower at ~87% discount to 2018 trade following foreclosure tied to $280M CMBS loan (TheRealDeal)