BiggerPockets Daily Today's Buying Opportunity That Looks Like 2012
Apr 1, 2025
Thinking of real estate? The multifamily market might be your golden ticket! Prices have plummeted over 23% since last year, but signs of recovery are emerging. Rents are on the rise while supply diminishes, making this a prime time for savvy investors. Learn strategies to capitalize on cap rates and dive into recession-resistant opportunities, including mobile home parks. With entry as low as $5K, discover how today’s market echoes the promising days of 2012!
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Multifamily's 2012 Moment
- Multifamily real estate may be mirroring the 2012 single-family market crash, presenting a buying opportunity.
- Prices have dropped 23.5% from their peak, similar to the 27.5% drop in single-family homes in 2012.
Bleak Sentiment Parallels 2012
- Negative sentiment surrounds multifamily, similar to the 2011-2012 single-family market.
- This contrarian indicator, as highlighted by Warren Buffett's wisdom, suggests a potential buying opportunity.
Plunging Construction Starts
- Multifamily construction starts have plummeted by 25%, mirroring the oversupply seen in single-family during its downturn.
- This decrease in new units could eventually lead to a market rebound as supply diminishes.