BiggerPockets Real Estate Podcast

The Macro Analysis is Clear: Why We Are Reallocating (Away From Stocks) to Real Estate in 2025

Jan 17, 2025

In this engaging discussion, Scott Trench, CEO of BiggerPockets and a seasoned real estate investor, makes a compelling case for reallocating investments from stocks to real estate by 2025. He highlights the underpricing of residential real estate amid high average prices and shares insights on unique buying opportunities in the market. Scott also reveals his strategy of selling off his stock portfolio in favor of real estate and examines the ramifications of rising interest rates and evolving rental market dynamics. His enthusiasm for the multifamily market presents a promising outlook for savvy investors.

54:56

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Episode guests

Scott Trench

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Episode notes

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Quick takeaways

The podcast discusses emerging opportunities in real estate, emphasizing its potential undervaluation despite current high prices due to market dynamics.

Experts predict a rise in residential housing transaction volumes in early 2025, suggesting a healthier market as it moves past historical lows.

There is a strong belief that buyers may find lucrative deals in distressed commercial real estate assets, especially in multifamily units, by late 2025.

Deep dives

The Upside Era and Real Estate Investor Strategies

The concept of the 'upside era' suggests that the real estate market is nearing a turning point, where investors can achieve financial freedom through strategic investments. Both speakers agree that while recent years have been challenging for real estate, there is potential for positive growth moving forward, especially as prices of other asset classes have surged. This creates an opportunity for real estate, which has remained relatively stable, to attract more investors seeking returns. It is emphasized that real estate continues to be the best asset class for long-term financial independence despite current market challenges.

Intro

2min

Real Estate Market Dynamics: Trends and Predictions

14min

Shifts in the Rental Market and Predictions for Mortgage Rates

4min

Understanding the Yield Curve and Its Impact on Real Estate Investment

3min

Navigating Real Estate Investment Strategies

15min

Forecasting Opportunities in the Multifamily Real Estate Market

5min

Market Reflections and Future Prospects

12min

Is it a good time to invest in real estate? Yes, and we have proof that real estate may be underpriced, even as we hover around the most expensive average home prices in history. How can real estate be undervalued when prices are at historic highs? Dave is sitting down with Scott Trench, CEO of BiggerPockets, who has condensed ten hours' worth of research into one episode to prove to you that, without a doubt, real estate will be winning over the next few years. Plus, he’s about to make a BIG financial bet on it.

We’ve been talking a lot about entering the “upside” era recently—the new cycle of real estate investing—and wanted Scott’s take on it, too. He has invested in real estate for over a decade, reached financial independence through rental properties, and has been openly critical about multiple sectors of the real estate industry over the past few years.

Today, Scott makes a compelling case for real estate as a better investment than stocks, crypto, or gold. Some specific real estate niches could see prices drop even more, making 2025 (and 2026) phenomenal opportunities to buy. Make your choice: tune into this episode and build wealth while others sit on the sidelines or wish you had done so in a few years.

In This Episode We Cover:

Why residential real estate may actually be undervalued in 2025

One sector of real estate with enormous buying opportunities nobody is noticing

Scott’s MASSIVE real estate bet and why he’s selling much of his stock portfolio

Where interest rates will be in 2025 and whether they could rise even more

Rental housing demand and the almost irrefutable case that rent prices will rise

Why Scott believes Bitcoin will be going to $0 in the long term

And So Much More!

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