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Deck Maker’s $450 Million Bet on America’s Renovation Boom

Grab “The Book on Estimating Rehab Costs”

Jump to topic:

(00:00) Intro

(02:36) The Home Renovation Boom

(06:58) The Labor Shortage Explained

(10:51) Which Costs Are Rising the Most?

(14:44) High Rates Curb Demand

(20:20) More Supply, Lower Prices?

(25:59) Home Renovation Predictions

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235: A World Without Airbnb & Why "Sinking" Could Cause Your Insurance to Skyrocket Jul 18, 2024

Show notes

Airbnb bans escalate, a “tsunami” could be coming for this real estate niche, and “sinking” cities lead to skyrocketing insurance prices. The housing market changes every week, so we’re here to break down the headlines and sift through the hype so you know what could impact YOU. Dave Meyer and the entire On the Market panel are here to discuss four of the top real estate-related news stories from this week.

First, we discuss the commercial real estate credit crunch that could cause a “tsunami” in the office investing space. Next, one major European city will ban Airbnb by 2028 in an effort to give locals a better chance at buying their first home. Will it work, or is it just a move to get more votes? With the dust of the NAR settlement settling, homebuyers could face thousands in fees to work with an agent, but will this stop homebuying?

Before we go over our last headline, make sure you’re standing on solid ground because “sinking” cities are becoming the new norm. Is your home slowly sliding off a cliff? If so, your insurance costs could be rising even higher. We’ll get into this story and the rest of the relevant real estate news on this episode!

In This Episode We Cover

A world without Airbnb and whether the newest ban could actually help homebuyers

Another “tsunami” coming for real estate and whether there’s truth behind the hype

Private equity’s new plan to gobble up even more real estate as one niche suffers

More fees for homebuyers as agent commissions change, but will this have to be paid out of pocket?

“Sinking” cities causing rising insurance costs and sliding home values

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Find an Investor-Friendly Agent in Your Area

See Dave, Henry, James, and Kathy at BPCON2024 in Cancun!

On The Market 201 - Breaking: NAR Settles for $418M, Buying and Selling Homes Could Change Forever

The commercial real estate credit crunch: ‘There’s a tsunami coming’

What does a world without Airbnb look like?

First-Time Homebuyers Could Face Thousands in New Costs Following NAR Settlement

U.S. cities are sinking. Here’s what that means for homeowners

Grab Dave’s Newest Book, “Start with Strategy”

Jump to topic:

(00:00) Intro

(01:47) A “Tsunami” Coming?

(12:47) The Airbnb Bans Begin

(21:22) New Fees for Homebuyers?

(28:20) Cities Are Sinking

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-235

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234: Did We Just Find 2024’s Most “Under-the-Radar” Real Estate Market? Jul 15, 2024

Show notes

We might have just found the most under-the-radar real estate market of 2024. It’s got jobs, appreciation potential, and affordable homes, and it’s growing…fast! The best part? We’re not sure anyone has ever talked about this specific market, so we’re going to be the first. But you had better be fast; most investors might start looking up homes for sale in this market after this episode! Which market are we talking about, and why are we so excited? We’ll share all the details in today’s show!

We’ve asked the entire On the Market panel to each bring “under-the-radar” real estate markets to share on today’s show. Many of these markets are small(er) towns but boast some HUGE investing benefits you won’t find in big cities or the already-hyped areas. From Midwest cash flow to Southern healthcare hotspots and one town that our panel gets VERY excited about, any of these markets could help you build wealth WITHOUT having to fight off competition from other buyers.

If you’re still looking for an investing market, check out our new tool, Market Finder! Dave and his team designed this tool to help you easily identify your next market to invest in! Once you’ve found a market, check out properties with our Deal Finder tool!

In This Episode We Cover

Four of our favorite “under-the-radar” real estate markets nobody is talking about

The TINY town that could see massive growth as one huge employer makes big moves

The cash-flowing Midwest city with rock-bottom unemployment and strong rent growth AND appreciation

The small town in Texas that Kathy personally picked for her new build-to-rent investments

Why medium-term rentals and assisted living facilities could see BIG returns in this healthcare hotspot

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

Find Your Next Investing Market with BiggerPockets Market Finder

Get Your Next Deal Faster with BiggerPockets Deal Finder

Find an Investor-Friendly Agent in Your Area

See Dave, Henry, James, and Kathy at BPCON2024 in Cancun!

8 “Under the Radar” Housing Markets With Low Prices and High Cash Flow

Buy Henry’s Newest Book, “Real Estate Deal Maker”

Jump to topic:

(00:00) Intro

(03:03) 1. Underrated Midwest Market

(09:33) 2. Small Town Texas Investing

(18:50) 3. Southern Healthcare Hotspot

(27:47) 4. Best Market Ever?

(36:22) Our Favorite Markets

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-234

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233: Housing Market “Stuck” Until 2026 as Insurance Prices Rise, Rents Slow Jul 11, 2024

Show notes

See Dave, Henry, James, and Kathy at BPCon2024 in Cancún, Mexico! Grab your ticket here!

The housing market is “stuck” and may stay that way for the next two years. With low inventory, high mortgage rates, stunted demand, and high rents, it seems like there’s nowhere to go. If you’re a homeowner, this could mean good news, as price stability keeps your property value high. But, if you’re looking to buy a home or work in a real estate-related industry, this isn’t what you want to hear. What happens after 2026, and what changes will come to the housing market over the next two years? We’re breaking it all down in today’s headlines show!

First, we’re discussing why economists think the housing market will remain “stuck” until 2026 and what happens to housing prices along the way. Next, if you’re looking for deals, you’re in luck! We’re showcasing some of the “coldest” markets in the US that are seeing prices start to fall already. Is your home insurance bill killing your cash flow? We’re diving into a recent survey on the insurance “shock” hitting landlords and what investors MUST do now to account for rising prices. Speaking of rising prices, are rent prices crossing the affordability threshold for most renters? We’re getting into it all in this episode!

In This Episode We Cover

Why the housing market may stay “stuck” until 2026, and what happens after

Home price appreciation predictions and whether we’ll continue to see values increase

The “cold” real estate markets seeing price cuts and stagnant listings

How new and experienced investors can prepare for the insurance “shocks” that keep coming

Affordability updates and why rent prices may be peaking as tenants struggle to afford housing

And So Much More!

Links from the Show

Grab Your Tickets to BPCon2024 in Cancún, Mexico

Find an Investor-Friendly Agent in Your Area

Join the Future of Real Estate Investing with Fundrise

Start Investing with Dave’s Newest Book, "Start with Strategy"

On The Market 218 - These “Subtle Risks” Could Have Astronomical Impacts on Real Estate Expenses w/John Sheffield

The housing market is ‘stuck’ until at least 2026, Bank of America warns

Want To Snag a Real Estate Deal? These 20 ‘Cold’ Markets May Be a Buyer’s Best Shot at a Bargain

The home insurance shock hitting the housing market has landlords concerned, too

Renters Must Earn $66,120 to Afford the Typical U.S. Apartment. The Typical Renter Makes $11,000 Less Than That.

Jump to topic:

(00:00) Intro

(03:51) Housing Market “Stuck” Until 2026

(13:59) Markets Seeing Price Cuts

(19:49) Insurance “Shock” Hits Landlords

(25:41) The Rent is Too High!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-233

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232: Better, Faster, Cheaper Mortgages Could Be On the Way w/Major Finance CEO Jul 08, 2024

Show notes

The mortgage industry has just been through one of its biggest booms and busts, but some tech-first, cost-saving innovations could improve things for borrowers after this current cycle. During the low-interest rate environment, transactions were at record highs as borrowers rushed to refinance or buy homes at rock-bottom rates. But, once interest rates shot up, the volume stopped, and those in the mortgage industry saw their incomes plummet. Many had to raise prices to keep the lights on, making originating a mortgage even more expensive for borrowers. But things are changing—for the better.

Faith Schwartz from Housing Finance Strategies is here to unveil some of the groundbreaking changes the mortgage industry is making and how it could make getting a mortgage more accessible and cheaper for first-time homebuyers and investors. Faith even shares some new loan products we didn’t know about, from mortgages that help low-money-down borrowers to products that allow access to equity without refinancing or using a HELOC (home equity line of credit).

With mortgage origination costs around a whopping $13,000, Faith walks through the new technology that could dramatically reduce this high price for borrowers and lenders. Plus, an AI and high-tech push from the government could completely flip this often archaic system. If you invest in real estate, want to invest, or work in a real estate-related service, this will seriously impact you!

In This Episode We Cover

Tech-first solutions that could make originating mortgages cheaper and faster

The massive boom and subsequent bust that led to today’s struggling mortgage industry

Why originating a loan is SO expensive, and the fees that could be eliminated in the future

How the Federal government is creating new policies that help struggling buyers

New loan products that can assist first-time homebuyers and those with untapped home equity

And So Much More!

Links from the Show

Find a Lender

Join the Future of Real Estate Investing with Fundrise

Start Investing with Dave’s Newest Book, "Start with Strategy"

On The Market 220 - Top Lenders Share “Good News” for Mortgage Rates + Trending Investor Loans

Connect with Faith on LinkedIn

Jump to topic:

(00:00) Intro

(01:39) The "Perfect Storm" Mortgage Industry

(06:45) Mortgage Businesses Going Under?

(08:55) The True Cost of a Loan

(12:49) Government-Fueled Innovation

(17:33) Saving Homeowners During the Pandemic

(23:04) Tech-First Mortgages Are Coming

(25:54) New Loan Products to Know About

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-232

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231: With Slow Spring Homebuying, Zillow Predicts Price Drops in 2025 Jul 04, 2024

Show notes

Zillow’s latest housing market forecast shows a decline in home prices over the next year after a very slow spring homebuying season. While spring is traditionally the hottest time of the housing market, with more sellers and buyers hitting the market at once, this year was stunted significantly. Will this trend continue as housing inventory remains at rock-bottom levels, or are things gradually improving, with a return to normalcy in sight? We’ve got Dr. Skylar Olsen, Chief Economist at Zillow, on to share the latest forecast and which markets could be in trouble.

With mortgage rates still hovering around seven percent, homebuyers and sellers are stuck. Sellers don’t want to trade into a more expensive mortgage payment, and buyers can’t afford today’s median home price. As a result, some under-the-radar, affordable real estate markets are seeing home and rent prices increase, while some traditionally hot markets are already seeing price corrections.

Where will the next correction hit, and which markets will have the most opportunity for real estate investors? Skylar explains it all, plus why Zillow updated their recent home price forecast to show a DROP in home values over the next year.

In This Episode We Cover

Zillow’s updated housing market forecast and why they’re predicting prices to drop

The spring homebuying season’s “extra slowdown” and why buying/selling is so stunted

Skylar’s 2025 housing market and mortgage rate predictions

What happens when mortgage rates get cut, and whether this could fire up the housing market again

The real estate markets seeing the most price corrections, plus hot markets Zillow is keeping an eye on

Markets with the strongest rent growth (for single-family AND multifamily investors)

And So Much More!

Links from the Show

Find a Lender

Join the Future of Real Estate Investing with Fundrise

Episode Show Notes

Start Investing with Dave’s Newest Book, "Start with Strategy"

BiggerPockets Real Estate 959 - BiggerNews: 2024 Housing Market Update and Why Prices Are Still Rising

Access Zillow’s Free Housing Data

Jump to topic:

(00:00) Intro

(01:41) Homebuying Sees “Extra Slowdown”

(06:56) Homes Sitting Longer

(08:39) More Inventory On the Way?

(13:42) Zillow Updates Forecast

(18:17) Markets Seeing Price Corrections

(21:35) Hot Markets

(23:00) Where Rents Are Growing

(27:10) Investors, Watch THIS

(29:53) 2025 Predictions

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-231

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230: Post-Pandemic Demand Boomerangs Back to Cities, What Should Investors Do? w/Richard Barkham Jul 01, 2024

Show notes

“Super cities” are seeing a massive comeback in demand—one that most investors thought was impossible. With work-from-home being scaled back by many major companies, returning to downtown is a no-brainer for high-paid employees. With more amenities than the suburbs, younger workers are being enticed back into the office. And who’s winning with all this boomeranging demand? You guessed it—office investors. We brought CBRE’s Richard Barkham back to give us the latest update on how cities and office investors are faring.

Office investing has been heavily criticized over the past few years as vacancies exploded and tenant turnover became increasingly common. Office space was an easy target as remote work became the new norm. However, trends change, and Richard sees a massive investing opportunity in certain office space sectors. But which cities are worth investing in and around? What type of office investments are faring the best? And will we continue to see downtown demand rebound?

We’ll get into it all in this episode of On the Market. Plus, stick around to hear Richard’s predictions on interest rate cuts, whether or not we’ll achieve a “soft landing,” and what investors must be looking at NOW to make significant gains over the next few years.

In This Episode We Cover

The cities seeing the biggest influx in demand and why Americans are moving back to downtown

Why the “doom loop” scenario never came true, even though so many forecasters predicted it

The one type of office investing that could see a massive surge in demand over the next two years

Richard’s “number one investment strategy” of 2024-2025 that investors MUST look into

How residential real estate investors can take advantage of the rising demand for downtown housing

And So Much More!

Links from the Show

BiggerPockets Bootcamps

Join the Future of Real Estate Investing with Fundrise

On The Market

Connect with Other Investors in the “On The Market” Forums

On the Market 141 - The “Doom Loop” That Could Crash Commercial Real Estate

Hear Our Past Episodes with Richard:

On the Market 179 - A “Year of Opportunity” to Come for Multifamily, Says CBRE’s Richard Barkham

Read CBRE’s Latest Reports:

Analysis of US Prime Office Buildings

Shaping Tomorrow’s Cities

Jump to topic:

(00:00) Intro

(01:24) Cities See Returning Demand

(05:41) The "Doom Loop" Scenario

(07:16) Offices Are Filling Up Fast

(11:24) #1 Investment Nobody is Thinking About

(15:37) Investing In and Around Cities

(22:31) Rate Cuts and Economic Predictions

(26:06) Investors MUST Do This

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-230

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229: When Will Home Prices Fall? + The Affordable Housing Solution We All Want Jun 27, 2024

Show notes

When will housing prices drop? Will real estate prices go down, or are we stuck with ever-worsening affordability as home prices continue to rise? What’s the solution to affordable housing, and why can’t investors just build smaller, more affordable homes? Our panel of expert investors gets asked these questions all day, so in this episode, we’re taking the above questions and some others from the BiggerPockets Forums and throwing them at our seasoned investors to get their takes.

First, we ask, “What would have to happen for home prices to drop?” Investor or first-time homebuyer, you’ve probably asked yourself this question. We’ll give an in-depth scenario of the exact supply and demand factors that could cause prices to finally fall. Next, how to create affordable housing and why investors might be the answer. With high home prices, is it better to buy and hold or flip houses in today’s market? Plus, the experts share exactly WHICH markets they see the most potential in today. Finally, you’ll get the pro flipper’s tips for comping properties in a market with barely any home sales.

Do you have a question to ask the experts? Post it in the BiggerPockets Forums, and we may answer it on a future show!

In This Episode We Cover

What would cause home prices to fall and affordability to improve (and if it’s likely)

The investor-friendly solution for affordable housing that could help you build wealth while providing much-needed housing

Flipping vs. renting and what will make you the most money in today’s market

The rarely talked about real estate markets with immense potential that we’d invest in today

How to comp (compare) properties when the market is changing and there are limited home sales

And So Much More!

Links from the Show

BiggerPockets Bootcamps

Join the Future of Real Estate Investing with Fundrise

On The Market

Connect with Other Investors in the “On The Market” Forums

Henry's Instagram

James' Instagram

Kathy's Instagram

See Henry, James, and Kathy at BPCON2024 in Cancun!

Ask Your Question on the BiggerPockets Forums

Jump to topic:

(00:00) Intro

(01:43) Could Home Prices Fall?

(07:43) How to Create Affordable Housing

(16:50) Best Time to Flip Houses?

(22:24) Where We’d Invest Today

(31:51) James’ Rules for Comping

(34:02) Ask Your Question Here!

Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-229

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228: Demand for Rentals is Rebounding as Affordability Begins to Improve w/Jay Parsons Jun 24, 2024

Show notes

Downward pressure on rent prices is causing a “cascade” effect across all unit types. Whether you live in a luxury apartment or budget-friendly multifamily building on a busy street, you’ve probably seen asking rents lowering around you with apartment concession offers in many leasing offices. With multifamily supply hitting “peak completions,” apartment operators have had to tackle rising vacancy rates by lowering rents. But this trend could be reversing soon, just as things were getting more affordable for renters.

Jay Parsons, rental housing economist, spends much of his day searching through rental data to find trends pointing to what could happen next. We’ve brought him on to understand why rents are dropping, where they could be heading, and what happens now that multifamily construction is starting to pause.

Jay speaks on the rebounding rental demand that’s starting to show, why our “oversupply” of multifamily could quickly become a shortage, which apartment classes are seeing significant rent price discounts, and whether or not these problems could spill over into the single-family rental market. Plus, Jay gives his outlook for the next few years on whether or not rent growth will reaccelerate as multifamily construction starts fall significantly.

In This Episode We Cover

A rental demand update and why rent prices are getting more affordable

What’s causing the recent demand rebound in the multifamily rental market?

Why our multifamily “oversupply” could quickly vanish and create a new problem

Growing demand for single-family rentals and why these investors may be in a better position

When rent growth could reaccelerate and supply could shrink once again

One growing risk multifamily investors must be aware of when choosing a market

And So Much More!

Links from the Show

BiggerPockets Bootcamps

Join the Future of Real Estate Investing with Fundrise

On The Market

Connect with Other Investors in the “On The Market” Forums