Predicting 2025 Real Estate Trends

Feb 24, 2025

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Neal Bawa
This podcast guesting of Neal Bawa is hosted by Toby Mathis of Anderson Business Advisors Podcast.
Real estate visionary Neal Bawa, CEO of Grocapitus and MultifamilyU, returns to the podcast. Neal always presents a compelling data-driven forecast that should capture every investor's attention. Despite current market uncertainties, Bawa reveals a significant 5-million-unit housing shortage alongside plummeting inflation rates, positioning the US as the strongest performer among developed economies. Most notably, he predicts a dramatic surge in both single and multi-family rent growth during 2026-27, driven by high interest rates creating supply gaps. With homeownership projected to decrease to 60% within a decade, the rental market is poised for unprecedented strength. This perfect storm of undersupply, shifting demographics, and economic conditions suggests a golden opportunity for strategic real estate investors, particularly in the multi-family sector, with promising rent growth anticipated as early as late 2025.

Highlights/Topics: 

• Hard data trumps market fear: why the numbers tell a different story

• US economy dominates globally as inflation drops from 6% to 2.4%

• Rising national wealth meets housing crisis: housing investment opportunity

• New construction wave promises better prices for entry-level housing market

• Five million unit shortage creates perfect storm for 2026-27 housing gap

• Massive rent increases predicted across all housing sectors in 2026-27

• Historic shift: Homeownership dropping to 60%, rental demand soars nationwide

• Real estate investments outperform during global inflationary cycles and market shifts

• 2025 forecast: Interest rates and delinquencies reshape investment landscape ahead

• Strategic opportunity: Significant rent growth predicted for late 2025 market