There’s been an enormous change in the real estate market over the last year. Commercial real estate is collapsing. Here to shed light on how this happened is real estate legend, Ken McElroy.
Ken McElroy is a long time real estate investor, author, and Rich Dad Advisor. Today, he’s back on this episode of Investing in Real Estate to unpack exactly what’s going on in the real estate market and his predictions for the future. Click play to hear this incredible interview with Ken McElroy!
On this episode you’ll learn:
- The problem with commercial real estate.
- Which real estate industry is headed for trouble next.
- What’s going on with the affordable housing crisis.
- And much more!
The Problem with Commercial Real Estate
Office spaces and regional malls are dead at this point. The pandemic changed many patterns in our society, including shopping and the way we work. Many cities are in big trouble because of these vacancies. And investors who currently own commercial properties are in a jam because their loans are coming due — but it doesn’t make sense to refinance with today’s interest rates.
Which Real Estate Industry Is Headed for Trouble Next
Ken predicts that multifamily properties will be the next sector in hot water. Here’s why: the properties that are coming to the market now started construction about two years ago. In that time frame, interest rates have raised significantly. And when rates go up, of course mortgage payments follow suit.
What’s Going on With the Affordable Housing Crisis
There is an incredible lack of supply in the current housing market. Ken shared that there’s a massive displacement happening, and we need about one million units per year. The only way to remedy this problem is to add more housing to the market.
Episode Resources
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