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Hear Our Last Interview with Joe On The “New Era” Of Higher Prices, Interest Rates, and Employment

Is the Global Economy About to Collapse? Inside China’s Real Estate Crisis

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195: What Happens to Rent Prices When 1,000,000 New Units Come Online in 2024? w/Chris Salviati Mar 04, 2024

Show notes

Rent prices peaked in 2022 after a double-digit percentage run-up. Due to more household formation, disposable income, and remote work availability, Americans were doing whatever they could to upgrade their housing to bigger, better, and often more expensive options. But, after interest rates shot up, the economy began to cool, and work-from-home became a not-so-sure thing, Americans became more budget-conscious. As a result, vacancies rose, and rent prices began to fall. So, how close are we to seeing rent growth return?

Apartment List’s senior housing economist, Chris Salviati, joins us to share what his team has seen in the nationwide rent data. Chris looks mostly at large apartment data—the sector that’s been hit the hardest in recent years. With multifamily properties struggling to find renters and lowering their asking prices to prompt demand, you’d think the market had found a bottom—but this isn’t the case.

A tidal wave of multifamily inventory is about to come online, and when it does, multifamily investors will be forced to compete with the newest and most luxurious options on the market. Will this oversupply trickle down to single-family rentals, or will renters turn away from the A-class buildings in search of more affordable options? Chris gives us his thoughts, plus future rent growth predictions, in this episode!

In This Episode We Cover:

What happens to rent prices when 1,000,000 more multifamily units come online

Markets that have the most oversupply and could see significant rent cuts

The massive concessions multifamily apartments are giving new renters

When real estate investors can expect rent growth to pick back up

2024 rent price predictions and whether demand could come back

How single-family rental prices will be affected by multifamily’s huge oversupply

And So Much More!

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Chris' Articles and Reports

Chris' LinkedIn

Chris' X/Twitter

Rents Show Biggest Decline in 3 Years—Should Landlords Panic?

Multifamily Is at High Risk of Continuing Its Historic Crash in 2024—Here’s Why

2024 Rental Market Outlook: Is a Shift Coming?

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194: 4 Hot Housing Markets with Huge Home Price Appreciation (50% Jumps!) Feb 29, 2024

Show notes

Most real estate markets in America saw huge home price growth over the past five years. Ever since the pandemic, equity and appreciation have been slingshotted to new heights, with some housing markets having over FIFTY PERCENT home price appreciation in just a few years. Today, we’re touching on the four top appreciation markets in America, all of which saw massive price jumps over the past five years, and some are even still affordable!

But, if you’re like most real estate investors, you’re screaming at your screen, “What about the cash flow? You can’t bet on appreciation!” Well, we’ve already read your mind as we get into a debate over whether or not appreciation SHOULD be accounted for before buying a property and whether or not it’s better than cash flow. Surprisingly, some of our appreciation-rich experts prefer cash flow, while our cash flow market investors prefer appreciation.

Stick around as we dive into the top appreciation markets in America, which ones we’d invest in, which ones may be on a downward trend, and why many Americans love the mountains so much they secretly want to be ranchers instead of nine-to-five workers.

In This Episode We Cover

The top four appreciation and equity growth housing markets in America

How work-from-home changed the housing landscape forever

Whether or not to underwrite for appreciation when analyzing your real estate deals

The signs that your real estate market is about to experience explosive appreciation

A cash flow vs. appreciation debate and the surprising choice most investors would make

What you MUST do before you make an appreciation bet on a rental property or housing market

And So Much More!

Links from the Show

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Cash Flow Isn’t Dead: 4 Markets With The Highest Rent-to-Price Around

Cash Flow vs. Appreciation: What Experienced Investors Know About the Debate That You Don’t

Books Mentioned in the Show

Real Estate by the Numbers by Dave Meyer and J Scott

Retire Rich with Rentalsby Kathy Fettke

Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-194

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193: 4 Real Estate Investing Trends That Could Take Over in 2024, 2025, and Beyond Feb 26, 2024

Show notes

Which investing trends could make you wealthy in 2024? First, we had long-term rentals, then the BRRRR strategy, short-term rentals, medium-term rentals, syndications…the list goes on and on. And while trends come and go, acting on them at the right time could be your ticket to financial freedom. So, which trends are worth investing in this year, and which are dying out and should be avoided? We’re giving our takes on this episode.

Some of the trends in this episode are brand new—only with advanced technology have these investments even been made possible, but some are trends you may already be part of. From room rentals to very flexible commercial investments, Elon Musk’s new affordable housing, and a way to “build” your own one percent rule properties, these trends have gone mostly unnoticed but are sure to catch fire in the coming years.

But, some trends that exploded over the pandemic should be put to rest. These once cash-flowing investments reached their heyday in 2022 and 2023 and are slowly becoming lackluster (and often dangerous) investments for new investors. Which tactics are we talking about? Stick around to find out!

In This Episode We Cover:

Future real estate investing trends that could offer BIG cash flow in 2024 and 2025

The flexible commercial real estate investment that online businesses rely on to survive

Kathy’s billion-dollar idea for a match-making app using this specific strategy

How to maximize your dollar per square foot by renting out PARTS of your property

The new smart homes that could finally solve the affordable housing problem

How to create the one percent rule (EVEN in 2024) by building your own rentals

Dying trends that are seeing low cash flow, high vacancies, and tough turnover

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

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

Top 10 Real Estate Markets for Cash Flow in 2024

Cash Flow For Rental Properties: What is Average or Good?

Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-193

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192: Cash Flow Isn’t Dead: 4 Markets With The Highest Rent-to-Price Around Feb 22, 2024

Show notes

Cash flow real estate is hard to find. In almost any big city, making financial freedom-producing cash flow is becoming a pipe dream. But that doesn’t mean there still aren’t pockets of cash flow throughout the United States; you just need to know where to find them. Thankfully, we’ve done the work for you, putting together a short list of cash-flowing real estate markets with the highest rents and lowest home prices.

In this episode, we’re talking about cold, hard cash flow. More interested in building equity but still want some passive income on the side? We share four different strategies ANY investor can use to find cash-flowing rental properties in ANY market. Looking for a new market? You're in luck; we’ve got a list of four top cash-flowing real estate markets—but the real question is, would WE invest in them?

Finally, we’ll share our takes on whether or not cash flow is crucial, especially as it becomes harder to find. You’ll see why Kathy and Henry have stopped caring so much about mailbox money and are focusing on something much more important when building wealth.

In This Episode We Cover:

The four ways to find real estate cash flow EVEN in an appreciation market

The cash flow “situations” to look for whenever buying a new property

The argument FOR using less debt, but the big downside to consider

Four cash-flowing real estate markets with high rents and low home prices

Whether or not WE think cash flow is crucial for investors in 2024

The one thing that made Kathy very wealthy and why she stopped searching so hard for cash flow

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

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

Top 10 Real Estate Markets for Cash Flow in 2024

Cash Flow For Rental Properties: What is Average or Good?

Books Mentioned in the Show

Short-Term Rental, Long-Term Wealthby Avery Carl

30-Day Stay by Zeona McIntyre and Sarah Weaver

Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-192

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191: The Million-Dollar Question: Is College Still Worth It in 2024? w/Dr. Anthony P. Carnevale Feb 19, 2024

Show notes

Is college worth it? Many Americans are beginning to boldly state, “Nope!” But does the growing anti-higher education sentiment point to facts or fiction around the cost of college? We invited Dr. Anthony P. Carnevale, research professor and director of the Georgetown University Center on Education and the Workforce, to the show to give us up-to-date data on the true ROI of a college degree.

With America’s shockingly low college graduation rate and student loans being one of the biggest limiting factors of financial freedom for many Americans, it’s understandable why so many people are skipping college to go straight into the workforce. But the data paints an entirely different picture. Those who opt out of the traditional four-year degree system could be making a massive mistake, one that could cost them seven figures in the long run. A sum that size could be the game changer for finding financial independence.

In this show, we ask Dr. Carnevale about why college has gotten so expensive, the problem with freezing tuition, which majors make the most (and the least), and whether where you go to college even matters. Plus, he shares some shocking statistics about how much a degree is worth and why one group of Americans is ditching degrees in today’s strong economy.

In This Episode We Cover:

Keller Williams' settlement of $70M in the NAR agent commission lawsuit and what this means for the future of agent commissions

The rise of “niche” brokers and agents and why they may THRIVE in the coming years

Our crucial advice for first-time homebuyers that you CANNOT miss

Commercial real estate losses and how hard IS it to get an investor loan today? (this will surprise you)

New jobs report numbers that took many economists by surprise and what effect it could have on future mortgage rates

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

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

Is College Worth the Cost? This 30,000 Variable Study Says “Sometimes…”

Hear Dave on The “BiggerPockets Money” Episodes About College Degree ROI:

Why 40% of Master’s Degrees Aren’t Worth It

Federal Student Loan Forgiveness Update: What Happens Now?

Connect with Dr. Carnevale:

Dr. Carnevale's LinkedIn

The Chronicle of Higher Education

Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-191

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190: Keller Williams Settles for $70M in NAR Lawsuit, Banks “Rocked” by RE Losses Feb 15, 2024

Show notes

Just when you thought the NAR lawsuit coverage was over, Keller Williams agrees to settle for $70M, bringing a big blow to real estate agent commissions. How will this impact buyers and sellers, and are we entering a new age of home buying where only a fraction of the real estate agents exist? We’re getting into this headline and others affecting the housing market in BIG ways in this episode of On the Market.

Some agents will thrive while others barely survive in a post-NAR lawsuit world as real estate agent commissions are threatened once again. But it isn’t only agents getting hit hard this week. Banks have been “rocked” by real estate losses, primarily commercial real estate, as loans come due, but investors aren’t able to pay. One bank saw its share price slide by more than fifty percent this month as earnings reports showed a major loss from lending this quarter.

Finally, it wouldn’t be a headlines show if we didn’t touch on the jobs report. This month, we’re getting a mixed bag of good for the economy but bad for rates type of numbers. Jobs are growing, and the economy is still chugging along, but will this push rate cuts back as the Fed fails to find weakness in our economy? We’re giving you our thoughts on this episode!

In This Episode We Cover:

Keller Williams' settlement of $70M in the NAR agent commission lawsuit and what this means for the future of agent commissions

The rise of “niche” brokers and agents and why they may THRIVE in the coming years

Our crucial advice for first-time homebuyers that you CANNOT miss

Commercial real estate losses and how hard IS it to get an investor loan today? (this will surprise you)

New jobs report numbers that took many economists by surprise and what effect it could have on future mortgage rates

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

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

NAR Slapped with $1.8B Lawsuit Payout, Ripple Effects Could Be “Enormous”

Articles from Today’s Show:

Keller Williams Settlement

Bank Losses

January Jobs Report

Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-190

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189: The Fed’s Plan “Backfired,” Now They’re Scrambling w/Logan Mohtashami Feb 12, 2024

Show notes

The Fed is putting us all in danger. With high rates, low inflation, a strong job market, and millions of Americans wishing they could buy a home (but can't), we're in a strange position. Buying a home is still unaffordable even with rising wages, but the Fed won't drop rates BECAUSE of rising wages and such strong job numbers. We're in a housing market stalemate, and all of this could have been avoided if the Fed stopped counting on old data to save them.

You might think that these are wild claims, but thankfully, we've got the housing market expert of housing market experts on the show, Logan Mohtashami, to make his case. Logan's team at HousingWire tracks housing market data like no one else can. They have the most up-to-date metrics and the best forecasts in the industry and were right about this housing market, and the last one, the one before that, and…you get the point. It goes without saying Logan is the singular voice to trust when it comes to housing and the economy.

Logan says the Fed is "playing with fire" by keeping mortgage rates as high as they are. They want to break the labor market, but with every number pointing to a return to normal, why should they? Logan gives his thoughts on why the Fed isn't dropping rates, the huge housing market mistake they're making, the metrics that could point to a disastrous labor market, and the harsh reality for first-time homebuyers.

In This Episode We Cover:

A normalizing job market and what could cause it to finally break

The Fed's massive mistake that is putting the housing market in danger

Why the Fed won't lower mortgage rates yet and what they're waiting for

The devastating state of housing demand and why it shouldn't be like this in 2024

How lower-income households are getting hit the hardest, EVEN in an expanding economy

Bond market effects and why yields are staying so high

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

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

The Crash Predictors Are Wrong, Here’s Why

Here’s What Will Cause Mortgage Rates to Finally Fall

Is The Fed Moving Fast Enough to Save Us From a Recession?

The “HousingWire” Housing Market Tracker

Connect with Logan

HousingWire

Logan's Instagram: @logan_mohtashami

Logan's LinkedIn

Logan's Website

Logan's X/Twitter: @LoganMohtashami

Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-189

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188: The Super Bowl Show: Which Host City Has the BEST Housing Market? Feb 09, 2024

Show notes

It’s February, and you know what that means…Groundhog Day! Just kidding, it’s almost Super Bowl Sunday, so we’re tackling some of the top Super Bowl housing markets to see which ones make for a touchdown investment market and which don’t make the team. If you’ve ever wanted to own a rental property within driving distance of the biggest football game of the year, now’s your chance as we review four Super Bowl host cities and give our takes on their investing fundamentals.

Dave and the panel will look at Tampa, Florida; Los Angeles, California; New Orleans, Louisiana; and Miami, Florida. One of these markets is an all-panel hit, while others boast distributing metrics that any investment property owner should look out for. We’ll review each market, sharing their metrics, best strategies, and whether our expert panel would invest in them.

Plus, if you want to hear who WE’RE rooting for in Super Bowl LVIII, stick around, but please DON’T bet on it…we’re investing experts, NOT football experts.

In This Episode We Cover:

Which Super Bowl real estate markets we’d invest in

Kathy’s pick for a southern market with solid fundamentals and a rising population

The pricey coastal market that might only be good for a quick flip but NOT long-term rentals

Dave’s favorite sandwich city that has high cash flow but RISKY long-term potential

Rising insurance premiums turning this popular tourist destination into a dicey area to invest in

A very one-sided prediction on who will win Super Bowl LVIII

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

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