Plus, Zohran Mamdani has struck fear across the New York real estate community.
| | | | | | | | | Thousands of home buyers came to Cape Coral, a boating community on Florida's west coast with more canals than any place in the world. Now, it's the worst performing housing market in the U.S. Home prices for Cape Coral-Fort Myers have tumbled 11% over two years, the most of any major metro area. "For Sale" signs line every other block. Open houses are deserted. Foreclosures are ticking up. Deborah Acosta explains the confluence of factors, from high home prices and overbuilding to the pickup of tropical storms, that caused this downturn. New York City's landlords are scrambling to stop the socialist who wants to freeze rent on the city's rent stabilized units. Zohran Mamdani struck fear across the real estate community after his surprise victory in the Democratic primary for mayor. Some real estate execs are lobbying state lawmakers to serve as a brake on parts of Mamdani's housing agenda. Others say they will simply flee. "We've got to do something," said Greg Kraut, chief executive of KPG Funds. Rebecca Picciotto and Peter Grant explore what that something might be. —Craig Karmin, Real Estate Bureau Chief | | | | The Worst Housing Market in America Is Now Florida's Cape Coral | | |  | | Cape Coral is known for its extensive canal system. PHOTO: ZACK WITTMAN/WSJ | | | | Housing markets throughout the U.S. are grappling with one or more of the factors that can hurt home sales and prices, including high mortgage rates. But Cape Coral is suffering from nearly every affliction that can cause a housing market to slump. "Cape Coral is the worst housing market in America right now," said José Echevarria, a Realtor. "I don't think we're at the bottom yet." | | | | | Looking for WSJ's luxury homes and housing coverage? Sign up for WSJ Homes. | | | | | | MEMBER MESSAGE: Marketwatch Picks |  | | 'He Drained Everything.' My Husband Left and Took the 401(k) | | After 33 years of marriage, her husband walked away, taking all of their investments with him. Now she wants to know how to move forward. What should she do? Who can help? Read More | ![]() | | | | | | | - 3.5% The annual drop in overall construction spending in May, according to monthly Census data.
- 15%: The increase in global data center capacity projected per year until 2027, JLL estimated.
- 7%: The vacancy rate for apartments nationally in June, according to Apartment List. It's the highest reading in the index's history.
| | | | NYC Developers Gripped by Hysteria After Mamdani's Sudden Rise | | |  | | Real-estate executives are considering contingency plans. PHOTO: TIMOTHY MULCARE/WSJ | | | | Zohran Mamdani struck fear across the business community after his Tuesday night surprise victory against former New York Gov. Andrew Cuomo, who conceded in the city's Democratic primary for mayor. Now, New York City's developers and landlords are in a mad scramble to block from City Hall the socialist who wants to freeze rent. | | | | | | | 📰 Enjoying this newsletter? Get more from WSJ and support our journalism by subscribing today with this special offer. | | | | - NYC Rent Board Approves 3% Increase, Rejecting Calls for Freeze (New York Times)
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