On The Market

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

Jul 11, 2024

Economists predict a stagnant housing market until 2026 due to low inventory and high mortgage rates. Some US markets are already seeing prices fall. Landlords facing insurance price hikes. Rent affordability becoming an issue. Insights on investing in housing prone to natural disasters and challenges in affordable housing. Importance of networking for investors. Differing views on housing market trends discussed.

39:40

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Quick takeaways

Housing market expected to stay stagnant until 2026 due to high prices and low affordability.

Investors can find opportunities in 'coldest' markets with declining housing prices for strategic investments.

Deep dives

Economists Predict Housing Market Stagnation Until 2026

Economists from Bank of America forecast a stagnant housing market until 2026, attributing it to factors like pandemic-induced price hikes, inflation, and high interest rates. Despite a projected 4.5% and 5% price increase in the following years, a lack of affordability and supply-demand imbalances might sustain the market's stagnation.

Positive Perspective on Homeowners' Financial Situation

00:35

Understanding Insurance for New Homeowners

00:32

Intro

3min

Importance of Relationships for Investors and Housing Market Stagnation Prediction

2min

Economic Factors Affecting the Housing Market

7min

Differing Views on the Housing Market Trends and a Fun Bet on a Future Boxing Match

4min

Investing in Housing Markets Prone to Natural Disasters

9min

Impact of Rising Insurance Prices on Homeowners and Renters

5min

Challenges in Affordable Housing and Real Estate Investment

5min

Investing in Affordable Housing and Considering Market Underwriting

4min

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!

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