Hello Brick Brief readers, 

Happy Monday. The White House is weighing an antitrust probe into homebuilders, the AI data center boom is accelerating energy investment, and HPS is pushing further into grocery-anchored retail lending.

🏠 White House Antitrust Probe
The White House is weighing an antitrust probe into national homebuilders to examine whether builders used shared market data through an industry trade group to limit new supply or coordinate pricing. However, many of the largest homebuilders are concentrated in oversupplied Sunbelt markets where home prices are already down YoY, which makes it difficult for builders to keep adding supply at the same pace as before.

⚡ AI Data Center Boom Hits Energy Supply Chain
The $3T data center boom is driving a surge in electricity and energy demand, and to capitalize on this opportunity, midstream gas giant Williams is exploring buying US production assets to provide an end-to-end solution from production to transportation to behind-the-meter generation for hyperscalers building data centers. This rush is also spreading into grid “picks and shovels,” - TPG agreeed to acquire a majority stake in power infrastructure supplier Sabre Industries at a $3.5B valuation as investors target equipment tied to data center power buildouts.

🏬 HPS Expands Into Grocery-Anchored Retail
HPS Investment Partners provided a $415M refinancing loan for DRA Advisors and KPR Centers’ 13-property grocery-anchored shopping center portfolio spanning 2.4M SF across PA, CT, MA, and NJ. BlackRock’s HPS is known for large-scale direct lending and financing AI-linked sectors like data centers, but this deal points to a potential growing focus on grocery-anchored retail, where necessity-based tenants support steady baseline traffic and more durable cash flow.

US hiring enters “deep freeze” as firms pause amid tariffs and high rates – Low quits and tighter immigration flows are slowing job churn, keeping unemployment low even as hiring drops to 5.3M (WSJ)

US consumer sentiment hits six-month high at 57.3 in February – Gains were concentrated among wealthier households with stock portfolios as inflation and job market anxiety stayed elevated (Bisnow)

Fed’s Jefferson stays cautiously optimistic as inflation cools and job market stabilizes – He said rates are well positioned as unemployment holds near 4.4%, though AI-driven investment could temporarily add inflation pressure (Reuters)

Fed’s Daly flags “precarious” job market and signals more rate cuts may be needed – She warned low hiring could quickly turn into rising layoffs even as inflation remains above target (Reuters)

Fannie Mae and Freddie Mac finance record $152B in multifamily loans in 2025 – FHFA raised 2026 lending caps to $88B each as the sector braces for a major 2026–2027 refinancing wave (CoStar)

$1B Pennsylvania housing push targets 185K home shortfall – Gov. Shapiro proposed new bonds and statewide zoning reforms to speed ADUs, denser development, and homebuilding approvals (HousingWire)

Colorado weighs 20-year tax break to jumpstart data center growth – Lawmakers are debating incentives versus strict energy offset rules, as developers warn tougher regulations could push AI infrastructure investment to other states (Bisnow)

White House weighs antitrust probe into major homebuilders to address affordability concerns – DOJ is reviewing whether builders used a trade group to limit supply or coordinate pricing (Bloomberg)

The White House is examining whether large homebuilders used shared market data through an industry trade group to influence production decisions in ways that could reduce new supply or align pricing, which could suggest coordinated behavior rather than pure competition.

Many of the largest homebuilders are concentrated in Sunbelt markets where prices are already declining due to oversupply, which complicates the claim that they are collectively restraining production. According to Redfin, Austin is now the slowest major US housing market, with home prices down 4% YoY and sellers outnumbering buyers by 128% in December. It is economically irrational for homebuilders to continue adding supply in markets already struggling with oversupply and falling home values.

Homebuilders like Lennar may also contribute to price discovery by providing new-home alternatives that pressure existing sellers to adjust listings downwards. Lennar’s median home price fell to $386,000 in Q4 2025 from $430,000 a year earlier, as builders cut prices and leaned on incentives to maintain sales velocity amid softening demand.

Housing prices in homebuilder-dominated Sunbelt markets are falling as builders work through excess supply, while many unaffordable Northeast markets remain constrained by zoning, limited land availability, and regulatory barriers. Therefore, the alleged land hoarding may reflect risk management in an uncertain demand environment rather than a coordinated effort to restrict supply.

Affordable housing construction surged 73% nationwide from 2020–2024 with 310K new units – Seattle led major metros with 14.3K units, while Sun Belt markets like San Antonio and Phoenix saw the fastest growth rates (TheRealDeal)

Florida metros lead US price correction as growth slows to 0.9% – Cape Coral, Punta Gorda, and Naples are seeing the steepest declines as inventory rises, migration cools, and sellers reset expectations (Realtor.com)

Foreign capital keeps US housing liquidity flowing – Cash-heavy international buyers stay active despite higher US rates, as borrowing costs abroad often run even higher (HousingWire)

Judge rejects Compass bid to block Zillow’s “listing ban” policy – Court found no evidence Zillow and Redfin colluded or that Zillow holds an illegal monopoly over online home listings (Reuters)

Multifamily demand outlook weakens as US population growth slows to 0.5% – Falling immigration could pressure rent growth in Sun Belt boom markets like Miami, Austin, and Phoenix already facing heavy new supply (Bisnow)

US multifamily outlook softens as CoStar trims 2026 forecast for slower renter demand – Elevated vacancy is expected to decline more slowly even as new supply tapers later this year (CoStar)

US apartment rents tick up again in January as rebound extends into 2026 – CoStar says modest growth is returning after flat to declining rents through the second half of 2025 (CoStar)

Industrial vacancy hits decade high as 1.5B SF of warehouse space searches for tenants – CoStar expects vacancies to rise toward 7.8% in 2026 as sublease supply surges and rent growth slows to 1% (Bisnow)

Tesla leases 267K SF Milmont Industrial advanced manufacturing facility at 49000 Milmont Drive in Fremont, CA – Tesla is expanding production capacity for Optimus humanoid robots; Hines and Oaktree listed fully leased property for sale (CoStar)

RBI chains show mixed Q4 traffic as Firehouse Subs rose 3.9% YoY while Tim Hortons fell 4.5% – Burger King was up 0.7%, and Popeyes slipped 0.5%, as promotions drove uneven momentum into 2026 (Placerai)

$670B Big Tech AI capex surge rivals America’s largest capital projects – Meta, Amazon, Microsoft, and Alphabet are pouring record spending into data centers and computing infrastructure in 2026 (WSJ)

PJM warns data center boom could drive 60GW power shortfall over next decade – Closing the gap may require $180B of new generation investment to avoid reliability risks by 2027 (Bloomberg)

Michigan AG urges regulators to reopen DTE power approval for Oracle and OpenAI data center – State officials warn the contracts could threaten energy affordability as backlash grows over AI facilities driving up electricity demand (Bloomberg)

Data center boom lifts HVAC demand as hyperscalers target $593B of 2026 AI capex – Carrier and Johnson Controls see commercial cooling growth offsetting weaker residential air conditioning sales (Bloomberg)

Midstream gas giant Williams explores buying US production assets to power AI data centers – Company wants an integrated supply pitch for hyperscalers as it invests over $5B in dedicated generation projects (Reuters)

Williams owns ~33,000 miles of natural gas pipelines and storage infrastructure and has committed over $5B to AI-linked power projects, which include Meta’s 440-megawatt Socrates plant in Ohio.

The company now wants to move further upstream and vertically integrate into gas production so it can offer an end-to-end solution from production to supply and transportation to behind-the-meter generation for hyperscalers building data centers.

Serverfarm secures $3B credit facility to finance North American data center development pipeline across Houston, Atlanta, and Toronto – Capital backs pre-leased hyperscale campuses as institutional lenders accelerate funding for AI-ready infrastructure buildouts (CoStar)

Last week, Cipher Mining’s $2B junk bond for a 300MW AWS-leased facility drew $13B of demand. Investor appetite for data center financing remains strongest when deals minimize leasing risk and tie cash flows to hyperscaler tenants.

TPG buys majority stake in power infrastructure supplier Sabre Industries at $3.5B valuation – Blackstone retains a minority position as investors target power and grid “picks and shovels” tied to AI data center growth (Reuters)

CMBS mall loan delinquency hits 11.2% as anchor vacancies keep distress elevated – Trepp says the sector is shrinking and still troubled, but investors are starting to buy and reposition select malls opportunistically (Trepp)

Cheap private loans fuel flipper bust in Cape Coral, FL as market turns – High-leverage private lending is driving a surge in foreclosures as rates, insurance costs, and falling prices hit inexperienced investors (Bloomberg)

Nearly 60 Saks Off 5th and Last Call store leases totaling 1.7M SF hit the market – Saks Global’s Chapter 11 is pushing major CMBS loans tied to its NYC flagship into special servicing (CoStar)

Palisades Center mall in West Nyack, NY auctioned to lender Black Diamond with $175M credit bid – Once valued at $881M, the property collapsed into foreclosure after anchor losses and revenue declines (TheRealDeal)

Redfin launches ChatGPT home search app to expand conversational property discovery – Integration lets users browse listings and explore market trends directly in ChatGPT as portals compete for AI-driven search (HousingWire)