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

BiggerPockets Money Podcast

BiggerPockets

Investing, Education, Business

4.6 • 2.9K Ratings

🗓️ 17 January 2025

⏱️ 54 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

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 Listen to All Your Favorite BiggerPockets Podcasts in One Place Join BiggerPockets for FREE Email Mindy: [email protected] Email Scott: [email protected] BiggerPockets Money Facebook Group Rent Growth Treasury Yields Real Median Household Income Median Sales Price of Houses S&P 500 Ten-Year Returns vs. S&P 500 P/E Connect with Dave Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/money-599 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected] Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	Hello, hello, hello. We know that our money audience invests in real estate or at the very
0:06.2	least is interested in investing in real estate. So today we have a special treat for you,
0:12.1	my dear listeners. We are sharing an episode of the Bigger Pockets real estate podcast where Scott
0:18.1	joined Dave Meyer to discuss whether or not today is the right time to jump
0:22.9	into the market. If real estate is going to be part of your fire journey, you won't want to
0:28.1	miss this one. Scott Trench, welcome back to the show. Happy New Year. Happy New Year, Dave.
0:33.3	I'm thrilled to be here. Always excited to talk about my favorite subject. Yeah. I want to start by getting
0:38.3	your feelings about my hypothesis in theory for 2025. If you've been listening to our episode so
0:45.6	far here this year, you may have heard that my theory so far is that we're entering a new era
0:50.9	of real estate. We're sort of ending this slog that we've been in. It's not like
0:55.1	this is going to be some time where people are going to be able to go out, buy any deal, and things
0:59.1	are going to be very easy for them. But I still think there's all this upside. Real estate's still
1:05.1	the best asset class for people to achieve financial independence. Let's just start there.
1:09.8	Do you agree with that or do you think
1:11.6	we're in for another tough couple years? I agree with your conclusion and disagree with parts of
1:17.4	your analysis, I think. Okay. That will make for a good show. I think real estate in 2014 through
1:24.2	2019 was such a no-brainer in a lot of ways because you could lock in low interest rate debt and get cash flow. I mean, a house hack at 95% leverage made a ton of sense. It was just a no-brainer, obvious way to build wealth. That has gone away. And what I think has happened in the last couple of years is real estate has not been a particularly good performer. We'll talk about that in a little bit. It's not been the best asset class. And I've been pretty vocal. And I think
1:46.3	you have, too, about muted growth on prices and rents. And I think the story of 2025 is now that
1:53.7	everything else has gone up. And real estate has kind of stayed static for the last two or three years.
1:59.4	I think we're seeing real estate emerge as a really attractive option compared to the other asset classes. So that's where I agree
2:05.4	with your conclusion and disagree with parts of your analysis. Well, let's go into some of my
2:09.9	analysis. I'd love to hear where you agree and disagree. My core theory here is that we've bottomed
	...

Transcript will be available on the free plan in -28 days. Upgrade to see the full transcript now.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.