Drunk Real Estate 109. Inflation Is Cooling, But Is Real Estate Still in Trouble? with Ashley Wilson and Danille McElroy
Aug 28, 2025
Ashley Wilson, a multifamily real estate investor, and Danille McElroy, co-host of the Ken McElroy Show, share their insights on the evolving real estate market. They discuss the recent cooling of inflation and what it means for future Fed interest rate cuts. The conversation touches on the optimism in the stock market versus the apprehension among real estate investors. They also delve into the struggles of commercial real estate, the regional differences in the housing market, and whether 2025 will present opportunities or challenges for investors.
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Episode notes
Owner Trapped By Ultra-Low Mortgage
- Danille described being "trapped" by a 2.6% mortgage rate that makes selling irrational.
- That situation reflects many owners who hold low-rate loans and reduce transaction volume.
Buy Below Replacement Cost When Possible
- Evaluate deals against current replacement cost: buying cheaper than today's build cost reduces downside.
- Consider supply constraints and rising construction costs when assessing long-term value of acquisitions.
Factor Rising Build Costs Into Valuations
- Watch construction and material cost trends because high build costs limit new supply and support prices.
- Use supply-side constraints as part of your valuation thesis when buying assets.
