BiggerPockets Real Estate Podcast The Macro Analysis is Clear: Why We Are Reallocating (Away From Stocks) to Real Estate in 2025
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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.
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Real Estate Underpriced?
- Real estate performed poorly from 2020-2024, while other assets like stocks soared.
- This relative underperformance makes real estate attractive in 2025, despite high historical prices.
Rent Growth & Supply
- High interest rates should boost rent prices, but this hasn’t happened due to increased supply.
- A record number of multifamily units were delivered in 2024, muting rent growth.
Long-Term Opportunities
- Consider long-term opportunities in markets with high supply growth, like Austin, Texas.
- High supply now may signal long-term demand and future rent growth.
