Core Insights - The NAHB Builder Confidence Index in the U.S. increased by 1 point to 33 in July, indicating a slight improvement, but remains below the neutral threshold of 50, which is considered a negative sentiment [1] - The index was at 41 in July of the previous year and has been in the negative territory for 15 consecutive months [1]

Core Insights - The price of residential development land in Australia has surged by 75% over the past five years, making homeownership increasingly unattainable for the average person [1] - Building costs remain significantly higher than pre-COVID-19 levels, exacerbating the housing affordability crisis [4] - The Australian government aims to build 1.2 million new homes in five years, but rising land and construction costs pose significant challenges [4] Land Prices and Market Dynamics - The median price of residential development land has increased from AUD 4.8 million in 2020 to AUD 8.5 million in 2023 [1] - Developers are reluctant to sell land, and banks are not aggressively pushing for asset liquidation, unlike previous economic downturns [4] - The national average land sale price reached AUD 369,500 by the end of 2023, marking an 8% year-on-year increase [10] Construction Costs and Labor Shortages - Building costs are driven up by historically high land prices and a shortage of skilled labor, with construction workers' salaries rising by 5% to 6% compared to pre-pandemic levels [9][12] - The construction industry is facing challenges due to labor being diverted to government infrastructure projects and high-profit residential renovations [9] Urban Development Challenges - Major cities like Sydney and Melbourne are experiencing severe shortages in apartment and townhouse supply, with infill development facing significant obstacles [7] - The density of cities like Melbourne is insufficient, and there is a need for reform in planning regulations to facilitate housing development in desirable areas [8] Policy Recommendations - The current stamp duty is seen as a major barrier to homeownership, with suggestions to gradually replace it with an annual land tax [12] - Potential solutions include introducing overseas skilled migrants to alleviate labor shortages, promoting modular construction to enhance efficiency, and shifting consumer preferences towards more affordable housing options [12]

Core Viewpoint - Elkstone warns that regulatory uncertainty is hindering investment in Ireland's housing sector, which is already facing a significant supply shortage [1] Group 1: Regulatory Environment - The current rent pressure zone (RPZ) system limits annual rent increases to 2% or the rate of inflation, whichever is lower, and is under review as it is set to expire this year [1] - There is a conflict where, despite a structural supply shortage similar to other European markets, the development pipeline in Ireland is stagnating at a time when new housing is critically needed [1] Group 2: Investment Challenges - Elkstone's Chief Investment Officer, Karl Rogers, states that the rent cap intended to protect vulnerable tenants has inadvertently restricted rent and investment growth [1] - Rising construction and financing costs are becoming fixed costs for projects, making many development initiatives unprofitable for developers [1] Group 3: Market Opportunities - The report highlights that the pause in approvals for new data centers by Ireland's energy regulator is redirecting potential investments to more competitive European markets [1] - This infrastructure bottleneck presents opportunities for private investors in renewable energy projects, which can alleviate capacity constraints and support Ireland's climate goals [1] Group 4: Company Background - Elkstone is known for its investments in startups such as Flipdish, LetsGetChecked, and Manna [1]