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

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.8 • 16.5K Ratings

🗓️ 17 January 2025

⏱️ 54 minutes

🔗️ Recording | iTunes | RSS

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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 Join BiggerPockets for FREE Let Us Know What You Thought of the Show! Ask Your Question on the BiggerPockets Forums BiggerPockets YouTube BiggerPockets Money Podcast 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 Join the Future of Real Estate Investing with Fundrise Grab Scott’s Book, “Set for Life” Find an Investor-Friendly Agent in Your Area The Rational Investor’s Case Against Bitcoin Connect with Scott Connect with Dave Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-1071 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	What's up, everyone? It's Dave from Bigger Pockets. This week on the show, we've been talking
0:09.0	a lot about the upside era. If you haven't heard, it's my theory about where the real estate
0:13.9	market is likely heading over the next year and how investors pursuing financial freedom
0:19.1	can take advantage of these dynamics to achieve
0:21.5	maximum upside in the long term. Today, it's time to stress test my theory. Our guest on this
0:28.5	episode is Scott Trench. Scott is the CEO of Bigger Pockets. He's my boss. He's also the co-host
0:34.4	of the Bigger Pockets Money podcast and a really experienced investor and personal
0:39.5	finance expert. And the reason I wanted to have Scott on the show is because I know he's also
0:45.1	doing a lot of the same work I do where you dig into data, look at macroeconomic trends,
0:51.0	thinking deeply about investing strategy, and because he's definitely not going to be
0:56.7	afraid to tell me if he thinks I'm wrong and he has different opinions that I do.
1:01.6	So I'm going to share in this episode a couple of my underlying hypotheses about the upside
1:07.2	arrow with Scott. We'll find out if he agrees. Scott told me he spent many hours
1:12.1	preparing for this episode, so I am expecting a few spirited debates about residential, commercial
1:17.8	real estate, and other investing options like the stock market and Bitcoin.
1:22.8	Scott Trench, welcome back to the show. Happy New Year. Happy New Year, Dave. I'm thrilled to be here.
1:28.1	Always excited to talk about my favorite subject. Yeah. I want to start by getting your feelings about
1:33.6	my hypothesis in theory for 2025. If you've been listening to our episode so far here this year,
1:40.5	you may have heard that my theory so far is that we're entering a new era of real
1:45.2	estate. We're sort of ending this slog that we've been in. It's not like this is going to be
1:49.5	some time where people are going to be able to go out, buy any deal, and things are going to be
1:54.0	very easy for them. But I still think there's all this upside. Real estate's still the best
	...

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