Real Vision: Finance & Investing #951 - Has the Real Estate Market Bottomed? With Ben Miller
Jan 11, 2024
Ben Miller, Co-founder and CEO of Fundrise, shares insights on the real estate market, the impact of interest rates, shortage of homes, struggles in the commercial office sector, analyzing mistakes, and the intersection of technology and real estate.
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Real Estate's Impact on CPI
- Real estate is the biggest driver of CPI, which is currently volatile.
- CPI's structure uses lagging data, making real estate's impact appear inflationary while actual rents are flat.
Real Estate Market Bottoming
- The real estate market is likely at its bottom, primarily driven by interest rates peaking in October 2023.
- As interest rates fall, real estate prices tend to rise, and significant rate cuts are expected.
Real Estate Recovery Timeline
- Real estate market recovery will likely be slow and steady, taking 24-36 months.
- Real estate asset prices, tied to interest rates, fell 50% and are expected to recover half of that in the coming years.