BiggerPockets Money Podcast

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

Jan 17, 2025

Dave Meyer, a real estate investor and podcast co-host, joins Scott Trench, CEO of BiggerPockets, to dissect why 2025 might be the golden year for real estate. They reveal that, despite high prices, real estate is currently undervalued. Scott shares his bold financial strategy of selling stocks to invest heavily in real estate. They explore shifting market trends, potential rental opportunities, and how understanding the yield curve can influence investment choices. This conversation is packed with insights that could reshape your financial future!

53:32

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Episode guests

Dave Meyer

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Episode notes

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Quick takeaways

Real estate is projected to be a better investment than stocks, crypto, or gold, with significant buying opportunities in 2025.

The anticipated recovery in residential housing transaction volumes is expected to gradually improve conditions as inventory shortages ease.

The hosts emphasize the importance of adapting investment strategies to current market fluctuations instead of relying solely on traditional avenues.

Deep dives

Shifting Real Estate Climate

The discussion centers on the major changes anticipated in the real estate market, notably projecting a transition in 2025. The hosts suggest that while the market has experienced stagnation in transactions and property prices over the past few years, conditions are expected to gradually improve. They emphasize that real estate remains a strong asset class for achieving financial independence, encouraging investors to consider entry points into the market. Despite acknowledging current hardships, they assert that a gradual recovery is on the horizon as more individuals may need to sell due to life changes.

Intro

2min

Navigating the Housing Market Recovery

13min

Shifts in the Rental Market

4min

Understanding the Yield Curve and Its Impact on Real Estate Investment

3min

Navigating Investment Trends

14min

Shifting Investments: Real Estate and Hard Money Lending

9min

Future Insights on Real Estate Investments

9min

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!

Links from the Show

Mindy on BiggerPockets

Scott on BiggerPockets

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