194: 4 Hot Housing Markets with Huge Home Price Appreciation (50% Jumps!)

On The Market

BiggerPockets

News, Investing, Business, Education

4.8 • 820 Ratings

🗓️ 29 February 2024

⏱️ 43 minutes

🔗️ Recording | iTunes | RSS

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Summary

Most real estate markets in America saw huge home price growth over the past five years. Ever since the pandemic, equity and appreciation have been slingshotted to new heights, with some housing markets having over FIFTY PERCENT home price appreciation in just a few years. Today, we’re touching on the four top appreciation markets in America, all of which saw massive price jumps over the past five years, and some are even still affordable! But, if you’re like most real estate investors, you’re screaming at your screen, “What about the cash flow? You can’t bet on appreciation!” Well, we’ve already read your mind as we get into a debate over whether or not appreciation SHOULD be accounted for before buying a property and whether or not it’s better than cash flow. Surprisingly, some of our appreciation-rich experts prefer cash flow, while our cash flow market investors prefer appreciation. Stick around as we dive into the top appreciation markets in America, which ones we’d invest in, which ones may be on a downward trend, and why many Americans love the mountains so much they secretly want to be ranchers instead of nine-to-five workers. In This Episode We Cover The top four appreciation and equity growth housing markets in America How work-from-home changed the housing landscape forever Whether or not to underwrite for appreciation when analyzing your real estate deals The signs that your real estate market is about to experience explosive appreciation A cash flow vs. appreciation debate and the surprising choice most investors would make What you MUST do before you make an appreciation bet on a rental property or housing market And So Much More! Links from the Show Find an Agent Find a Lender BiggerPockets Forums BiggerPockets Agent BiggerPockets Bootcamps Join BiggerPockets for FREE On The Market Join the Future of Real Estate Investing with Fundrise Connect with Other Investors in the “On The Market” Forums Subscribe to The “On The Market” YouTube Channel Dave's BiggerPockets Profile Dave's Instagram Henry's BiggerPockets Profile Henry's Instagram Kathy's BiggerPockets Profile Kathy's Instagram James' BiggerPockets Profile James' Instagram BiggerPockets' Instagram Cash Flow Isn’t Dead: 4 Markets With The Highest Rent-to-Price Around Cash Flow vs. Appreciation: What Experienced Investors Know About the Debate That You Don’t Books Mentioned in the Show Real Estate by the Numbers by Dave Meyer and J Scott Retire Rich with Rentals by Kathy Fettke Click here to listen to the full episode: https://www.biggerpockets.com/blog/on-the-market-194 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

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0:00.0	Hey, what's up everyone?
0:08.5	Welcome to On the Market.
0:10.1	I'm your host, Dave Meyer.
0:12.4	If you listened last week, we talked about some of the top cash flow markets in the country.
0:18.1	These are markets that, despite other types of metrics are seeing the
0:22.6	best potential for cash flow. And as promised, today we're going to offer the counter to that
0:29.3	discussion and talk about the biggest or hottest appreciation markets in the country.
0:35.9	So joining me today for this conversation are Henry Washington,
0:39.3	Kathy Fecky, and James Daneard. So as we get into this conversation, I just want everyone to know
0:45.4	what appreciation means. There's actually two kinds of appreciation that people in real
0:49.5	estate talk about. One is market appreciation, which is where macroeconomic forces like inflation, supply and demand,
0:58.5	increase the value of property over time. They can also decrease the value of property over
1:03.7	time, but in the United States, over long periods of time, housing prices have always gone up.
1:09.2	And that is called market appreciation. That's what we're going to be
1:11.6	talking about today. There's another type of appreciation. Some people call it forced appreciation.
1:18.3	And there is also, you know, I think James regularly calls it value add. That's where you buy something.
1:23.7	You add value to it and you force the value of that property to go up.
1:28.0	That's a very valid, very useful tool in your real estate investing toolkit, but that's not
1:33.5	what we're talking about today. So just keep that in mind. In today's discussion,
1:36.9	we're talking about market appreciation. So, Henry, let's start with you. How do you think about
1:43.0	appreciation and its importance in your portfolio? You know, it's start with you. How do you think about appreciation and its importance in your portfolio?
1:46.5	You know, it's interesting. When you are starting out in your real estate investing journey,
	...

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