BiggerPockets Real Estate Podcast
The Overlooked “Upside” That Will Make Future Landlords Rich
Mar 7, 2025
Chris Salviati, a senior housing economist at Apartment List, dives into the often-missed upside of real estate investing: rent growth. He explains how fixed-rate mortgages can lead to increasing profits as rent rises over time, while payments remain the same. The discussion includes insights into the pandemic's impact on rental prices, trends in the Sunbelt real estate market, and future predictions for rent growth. Will we see a return to pre-pandemic rental highs? Chris provides data-driven insights on where to watch for the best opportunities!
38:02
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Quick takeaways
- The podcast highlights that long-term rent growth, often aligned with inflation, is a crucial factor for sustainable real estate investment returns.
- It emphasizes the varying impacts on different property classes, with Class B and C properties expected to show greater resilience in current market conditions.
Deep dives
The Importance of Rent Growth for Investors
The potential for future rent growth is seen as a key driver for long-term returns in real estate investing. Historically, rental income growth has typically aligned with inflation, approximately 3% annually, making it easier for investors to project future income. However, recent market fluctuations due to the pandemic have caused unpredictable swings in rental growth, complicating investment strategies. Despite these challenges, the speaker emphasizes a belief in the resilience of the rental market and the benefits of purchasing investment properties at fixed mortgage rates during this time.
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