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 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.
Recession's Impact on Real Estate
- A recession would benefit the real estate industry by lowering interest rates, thus boosting prices.
- Housing, a consumer staple, is resilient during recessions, with rents experiencing only minor declines in previous downturns.
Triple Supply and Demand Mismatch
- Current market conditions show an oversupply of assets and an undersupply of money, creating disequilibrium.
- Tight money halts construction, leading to an expected undersupply of new homes in two years.