The Massive Opportunity of Declining Real Estate 'Boomtowns'

Episode #1,029

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Real estate “boomtowns” present a massive opportunity to investors in 2024. A few years ago, buyers were fighting tooth and nail to purchase properties in Austin, Boise, Phoenix, and other red-hot markets. Demand was growing in these cities, and prices were shooting up with no end in sight. But then…it stopped. Prices started declining, vacancy rose, and investors were stuck holding onto properties now worth less than what they paid. The interesting part? These market declines might be only temporary, and those who don’t buy now could be kicking themselves a few years down the road.

To give us insight into which boomtowns are worth buying in and which are worth ignoring is Matt Faircloth, multifamily real estate investor. He saw many investors rush to these real estate boomtowns during the peak and are now struggling to fill their rental units as the boom became a bust. He’s identified a sneaky strategy that allows you to buy properties at a discount in these markets to make money while the FOMO investors search for an exit option.

We’ll talk about the cities with the most hype, the ones worth investing in, the future boomtowns that most are ignoring, and the massive opportunity of “economic spillover” that could lead you to markets with the best future potential.

00:00 Intro
02:39 Real Estate "Boomtowns"
06:07 How "Boomtowns" Form
09:44 Cities with the Most Hype
12:11 Hyped vs. Solid Housing Markets
16:33 When Is It Too Late to Get In?
20:41 HUGE Opportunity for Investors
29:26 What “Boomtown” Investors Should Do
35:15 Upcoming Boomtowns

[michaelterrace]

Right on about New Haven! Not just about location between NY and Boston, but because of Yale. I like investing around college towns because there’s always a constant demand, tenants only stay for a year or 2 so raising rents is easier than with 10-15 year tenants. And…the best pizza on the planet.

[kylefordinvest]

Really insightful discussion on the opportunities in boomtown markets!

[CristhianPalomo-rj]

I'm closing in on my retirement and I'd like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?

[mandyrose]

So how do will find this type of properties?

[lll]

You guys all too young to remember the great recession & housing crash 10+ years ago? Why do biggerpockets usually frame risk as "It may not grow at the same rate" as though growth is a given, just maybe not at high rates. Houses do/can/have lost value too...for extended periods of time. And on a channel that promotes crazy high leverage, you guys will be the first dominos to fall hard.

[HadrianReed]

I really appreciate your efforts! Could you help me with something unrelated: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). Could you explain how to move them to Binance?

[InfinityAwaits]

Remote working will change the landscapes of cities as less people will be visiting them for work. I haven't been in a city since covid.