BiggerPockets Real Estate Podcast

2025’s Massive Opportunity for Real Estate Investing (Before It’s Too Late)

Dec 20, 2024

Ben Miller, CEO of Fundrise and a macroeconomic expert, lays out a compelling case for real estate investing with data-driven insights. He predicts a significant opportunity for investors in 2025 as housing supply dwindles while demand soars. Miller explains the potential rebound in commercial real estate and discusses how new Trump tariffs could benefit homeowners. He also highlights the growing disconnect between stock and real estate markets, making it clear why savvy investors should act before it’s too late.

35:57

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Episode guests

Ben Miller

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Episode notes

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Quick takeaways

The impending undersupply of housing and declining construction activity is expected to drive rental prices up significantly, benefiting current property owners.

The historical inverse relationship between real estate and stock market performance highlights real estate as a strategic investment during times of economic uncertainty.

Deep dives

Real Estate as a Value Investment

Real estate, particularly in the commercial sector, has experienced a significant downturn over the last 24 months, contrasting sharply with the bullish performance of the stock market. This divergence has created opportunities for discerning investors, especially as real estate prices have dropped by 20-40% since their peak in 2021. In contrast, stock prices are soaring, often leading investors to chase recent returns without considering longer-term value propositions. The principle of 'buy low, sell high' underscores this moment; current real estate valuations could provide an advantageous entry point compared to inflated stock prices.

Intro

2min

Navigating Investments: Real Estate vs. Stock Market

6min

Evaluating Real Estate as a Resilient Investment Opportunity

6min

Trends in Housing Markets

6min

Navigating Multifamily Housing Dynamics

7min

Navigating Economic Uncertainty in Real Estate

9min

Real estate investing may not see an opportunity like this for years. We’re in one of the wildest economic periods: mortgage rates are high, inflation has cooled, stock prices are hitting records, and the housing supply chain is slowing dramatically. What happens next? In short, something really, really good for real estate investors. And this isn’t hype—it’s precisely what the data points to.

Ben Miller, Fundrise CEO and one of our favorite macroeconomic experts, is back to break down his four data points that directly point to a win for real estate investors in 2025 and beyond. Answer this: what happens when housing supply is low, little to no new inventory is coming online, interest rates come back down, and everyone’s competing for homes? The answer: prices go up.

That reality is coming to fruition soon, and those who already own real estate are poised to reap significant profits. Those who sat on the sidelines will be forced to compete with other buyers as sky-high demand returns. But that’s not even Ben’s entire argument. He brings even MORE data to make the case for real estate in 2025—and it’s a case you shouldn’t ignore.

In This Episode We Cover:

An expert’s case for real estate investing in 2025 and why it isn’t too late to get in

Why commercial real estate could be close to the bottom (and be rebounding soon)

The stock-to-real-estate correlation that BROKE last year (and what it means)

The reason Ben believes new Trump tariffs could be good for homeowners and investors

Why the housing undersupply problem could get even worse in 2025, 2026

What happens when interest rates fall and demand for homes returns?

And So Much More!

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