2024 Real Estate Predictions: Home Prices, Rent, Interest Rates

Get ready for some real estate predictions for 2024! In this video, I'll be sharing my insights on home prices, rent, interest rates, and the CPI one year from now. But I'm not just making these predictions, I want you to challenge me too! Share your thoughts on what you think will happen in 12 months, and who knows, I might even reach out to you personally. So, let's dive into the future of real estate together and don't forget to subscribe for more exciting updates!

Ken has a real estate strategies podcast! Follow your favorite platform each week.

• • •

Be sure to click the bell to be notified as soon as the next informational video is posted!

•
ABOUT KEN:
Ken is the author of the bestselling books The ABC’s of Real Estate Investing, The Advanced Guide to Real Estate Investing, The ABC’s of Property Management, and has an upcoming book: "ABCs of Buying Rental Property: How You Can Achieve Financial Freedom in Five Years." Ken is a Rich Dad Advisor.


Ken offers a wealth of personal experiences, practical advice, success stories, and even some informative setbacks, all presented here to educate and inspire. Whether you’re a new or seasoned investor, the information and resources on this channel will set you on a path where you and your investments can thrive.

•

Although Ken McElroy and his affiliates take all reasonable care to ensure that the contents of this channel are accurate and up-to-date, all information contained on it is provided ‘as is.’

Ken McElroy makes no warranties or representations of any kind concerning the accuracy or suitability of the information contained on this channel.

#kenmcelroy #realestate #realestateinvesting #2024RealEstatePredictions #HomePrices #RentPrices #InterestRates #CPI #FederalReserve #HousingMarketTrends #ConsumerPriceIndex #MortgageRates #HousingSupply #DemandDynamics #CostOfConstruction #HomeBuying #RentalMarket #AffordabilityCrisis #PropertyTaxes #Insurance #Utilities #HousingBubble #EconomicForecast #FederalFundsRate #SupplyAndDemand #MillennialsHomebuying #AssetBubbles #HousingShortage #USHousingMarket #MarketAnalysis #RealEstateEconomics #FinancialPlanning #InvestmentStrategies

[FennaVa]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[gbailey]

Home prices to fall. Unemployment to rise. Interest rates to fall. Unemployment is the critical factor.

[sallyannmilavec]

What about if there are more job layoffs? Won't rents and home sales suffer?

[coltkom]

I think we will see deflation. Cars, houses, and rent.

[kevinarias]

Rent prices to go down for 2 reasons. 1) Overbuilding of apartment buildings in a lot of markets like SW FL. 2) Investors converting their STRs to long term. Seeing both of these situations happen already.
As rents go down, inventory will go up, and home prices will go down. I predict 10 to 30 percent down depending on the area.

[bravehats]

My prediction:
1). Unemployment will rise and stay around more 5-6%. (More people will be forced to sell their homes, due to unemployment, higher property taxes and incurance).
2). Home prices will fall around 8% to 15% (Homes prices are restricted by income. Something many people don't talk about).
3). Rent prices will also fall.
4). Federal Reserve will start cutting Fed Funds Rate by either Q3 or Q4 next year.
5). Mortgage rate will stay around 6% to 6.5% towards the end of next year.

[pmtilbury]

Big impact already on secondary business relying on housing - eg furniture, landscaping, renovation etc - all the things that new homebuyers spend money on for their new home

[MgtowRubicon]

Landlords include the cost of tax, insurance, maintenance, and cash flow in the rent. Why would they rent a property at a net negative income?

[RonaldMitchell-hkpb]

I am a retired tax auditor who has studied the economic factors of unemployment, rising costs of home ownership, and rising rents. Every election year there is a downturn in the economy historically. I have watched this trend for 40 years. The economy currently is strong due to consumer spending. The average consumer is stretched thin in overall cash flow. When real estate prices fall and interest rates fall due to some factor in the world economy such as layoffs, a recession is most likely. I believe your prediction is accurate based as you stated something must give when supply and demand prices are
are so high relative to limited dollars in the consumers hand

[Ethernet]

Even a 1% decrease in rates would do wonders for housing in my opinion. You can buy down 275 bps and be sitting in the low 4’s

[InvestedAgents]

Great data-driven overview! My thoughts are similar. Slightly lower rates. Single-family home sale prices & rents will remain flat to slightly positive. New construction will increase slightly, but not nearly enough to keep up with demand (at least for the next 12 months). And if rates dip below 6% home sales will spike further constricting inventory.

[nannylo]

Totally agree with your analysis as long as nothing catastrophic alters our current economic situation. I live in Hawaii and try add 50% of your figures for rent and mortgage payments in Hawaii. ADU is about our only hope for affordable housing but government making little momentum in that direction. Out of state speculators are driving our residents and local families out of their homes and out of the state. Sad ....

[somecelt]

Great analysis. The one area I disagree is the extremely low supply will continue. In my view, the number of cases where people “have no choice” to sell will start to increase through 2024. Foreclosures are up, baby boomers are aging into retirement homes, new inventory priced lower and some people must relocate for work are factors that will start to see more increases in supply of existing homes..
The “must sell” folks will start to take much lower amounts and with so few sales comps can drop quickly in local markets.
I do think some markets will hold but others will be hit by at least 10% drops.

[bowwm]

i was so happy selling my home 2 years ago with $100k profit, now i could not even get the same house at that price. sitting here with my cash losing its buying power but what you gonna do ..

[Ascending]

Right on Ken. From a 35 yr real estate investor and developer. Building small 1200 sq ft homes on average with USDA organic land with each deal. Everyone wins.

[zhinan]

Interest rate will go down. Housing prices will continue to go up. As will the rent

[danielwesson]

100% spot on. Some variations from market to market.

[labrinth]

Higher for longer, 2% "average" means slightly lower rents by the end of 2024, stagnant housing prices, and low 2's for cpi.

[grownupgaming]

Great predictions. One thing I didnt like is: 3:13 "the reason you have high demand is low supply." Wasn't very convincing, perhaps there's something better to say on demand.

[TJ-Stackin]

No reason for sellers to sell and transfer into a higher interest rate. House lock with the combination of lack of supply will drive housing prices up but not at a high rate maybe 2%. Unemployment will go up, interest rates will go up. Eventually, I see some deflation in some areas of the economy.