What Rising Rates and Surging Insurance Prices Are Doing to Real Estate | Odd Lots

In some respects, the real estate market has been surprisingly resilient in the face of rising interest rates. Homebuilders have generally performed well and home prices have not tumbled the way many might have expected. But looked at in another light, rising interest rates and reduced credit availability mean some real estate projects that might have made sense a year or two ago are no longer penciling out. On this episode of the podcast, we speak with David O'Reilly, the CEO of Howard Hughes Holdings, a major publicly-traded real estate developer with Master Planned Communities all over the country. Thanks to the company's role in the real estate market, David has perspective on all aspects of real estate, from housing to offices to retail development. We discuss the impact of higher rates, costlier insurance, and inflation.

Intro -- 0:00
How the pandemic actually catalyzed homebuilding — 7:02
Thinking long-term in an era of surging interest rates — 11:03
Demand has fallen but people still need a place to live — 17:08
The looming maturity wall, hedging and other financing anxieties — 20:36
A more holistic approach to real estate and developing — 27:29
Are there any ‘immune’ cities in terms of real estate markets? — 35:41
Why is insurance surging everywhere? — 39:18

Bloomberg's Joe Weisenthal and Tracy Alloway analyze the weird patterns, the complex issues and the newest market crazes. Join the conversation every Monday and Thursday for interviews with the most interesting minds in finance, economics and markets.

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