Seven of 12 Fed districts reported slight or no growth, and six saw housing soften
The Fed’s October Beige Book shows housing softening in New England, the Midwest and the West while data center construction keeps commercial builders busy.
By Erick Tarray · · 3 min read
The Fed’s latest Beige Book, based on reports collected through October 5, found two districts growing moderately, three modestly, four slightly and three with no significant change [1]. By our math, that makes seven of 12 with slight or no growth, against five in early September [2].
Home sales slowed in the Northeast and Midwest
Boston said closed home sales fell moderately from a year earlier while inventories grew [1]. Minneapolis reported August home sales down in most major markets, and St. Louis said inventory rose in its largest metros and homes took longer to sell [1].
Districts farther south, and New York, were steadier. Atlanta said home sales improved moderately, though more homes sold below asking price, especially in Florida [1]. Richmond said residential real estate picked up slightly, with sellers offering more concessions [1]. New York reported little change in activity, with tight supply still pushing prices higher [1].
| District | Residential | Commercial real estate |
|---|---|---|
| Boston | Sales down moderately, inventory up | Roughly stable, distress in urban office |
| New York | Little changed, tight supply lifting prices | Strong, led by office leasing |
| Philadelphia | Existing and new sales down slightly | Lending ticked down slightly |
| Richmond | Up slightly, more concessions | Slow |
| Atlanta | Sales up moderately | Up modestly, multifamily vacancies fell |
| Chicago | Demand down slightly, prices up | Unchanged |
| St. Louis | Down slightly, longer marketing times | Unchanged |
| Minneapolis | Down, August sales lower | Flat, office vacancies up |
Data center projects drove construction growth in several districts
Philadelphia, Cleveland and Atlanta all pointed to data centers as a source of construction work, and Cleveland noted one project was canceled after a local moratorium [1]. Chicago said residential construction declined a bit while nonresidential work held at a high level [1]. In Boston, construction slowed somewhat, with contacts citing overbuilding in Boston and high costs in Providence [1].
Prices rose faster in more districts
Three districts put price growth in the report’s strongest category and eight called it moderate, and four said the pace picked up [1]. In September only one district had reported price growth that strong [2].
How to use this
For home sellers and builders
- Price listings against current inventory, not spring comparables, in districts reporting softer sales. Boston and St. Louis both reported more inventory [1], which gives buyers more homes to compare.
- Budget for concessions in the Southeast and Mid-Atlantic. Richmond reported more concessions and Atlanta more sales below asking price [1].
For commercial developers and borrowers
- Ask lenders for a written spread before you commit to a site. Kansas City contacts said CRE loan spreads rose substantially and CRE loan demand weakened, and that uncertainty grew after long-term rates went up [1].
- Check whether your county has a moratorium or new rules on data centers before you count on that demand for nearby industrial or flex space, since Cleveland reported a canceled project after one [1].
For landlords and multifamily investors
- Compare your market with the district notes before setting rents. Atlanta said multifamily demand rose and vacancies fell, while Chicago said rents rose slightly [1].
- Plan operating budgets for higher energy costs. Higher oil costs appeared in all 12 district reports [1], which can show up in utility and maintenance bills.
This is market commentary, not investment advice.
Sources
- [1]Federal Reserve Board, Beige Book, October 2026, Oct 14, 2026.
- [2]Federal Reserve Board, Beige Book, September 2026 (summary), Sep 2, 2026.
- [3]Federal Reserve Board, Beige Book release schedule, 2026, Oct 14, 2026.
