I've been designing commercial and residential buildings in Columbus for 30 years, so I see the real estate market from the ground level--watching what gets built, what gets renovated, and what sits empty. Right now I'm cautiously optimistic about residential but more selective on commercial. We're seeing strong demand for custom residential projects and home renovations, but commercial office space is still adjusting post-pandemic with many companies downsizing their footprints. For stocks, I'd look at homebuilders serving the custom and mid-to-upper market rather than entry-level production builders. The clients we work with at KDG are still building despite higher rates--they have equity and aren't as rate-sensitive. Companies like Toll Brothers tend to serve this demographic better than mass-market builders. I'd also consider REITs focused on industrial and flexible commercial spaces rather than traditional office--we've designed several projects converting traditional spaces into adaptable layouts because that's what tenants actually want now. I'd personally avoid overexposure to downtown office REITs in secondary markets. We're in Columbus, which is relatively healthy, but I'm seeing how companies are consolidating into smaller, higher-quality spaces with better amenities. The old Class B office buildings aren't getting the renovation budgets they need. One project we consulted on recently involved a company moving from 15,000 sq ft to 8,000 sq ft of premium space--that trend is real and it's gutting occupancy rates in older buildings. The residential renovation and adaptive reuse markets are strong though. We're busier than ever helping homeowners reimagine their spaces and helping developers breathe new life into existing commercial structures. That tells me there's value in companies positioned for renovation, remodeling supply, and flexible space conversion rather than new traditional construction.
I manage marketing for a portfolio of 3,500+ multifamily units across multiple cities, so I'm watching the rental market daily through occupancy rates, lease velocities, and what prospects actually care about. Right now I'm bullish on multifamily REITs focused on urban infill properties in strong job markets--we're seeing consistent demand in Chicago, Minneapolis, and San Diego where our properties are located. People still need places to live, and rental demand stays resilient even when rates climb. The opportunity I see is in companies investing in resident experience technology and operational efficiency. We cut our cost per lease by 15% while increasing qualified leads by 25% through better digital marketing allocation--properties that understand this data-driven approach to marketing and operations are going to outperform. I'd look at multifamily operators with strong tech infrastructure and in-house capabilities rather than those still heavily reliant on expensive brokers and traditional marketing. We reduced broker fees significantly and saw better results. For specific plays, I like diversified multifamily REITs with properties in second-tier cities that still have strong job growth but haven't seen the overbuilding that's hitting some Sun Belt markets. We're launching properties faster through video tours and better digital infrastructure--our lease-up velocity improved 25% with zero additional overhead. Companies positioned to do more with less in property marketing and operations have real competitive advantages right now. I'd personally avoid overexposure to luxury new construction in oversaturated markets. We're seeing the best performance in stabilized properties with strong fundamentals and reasonable price points, not the ultra-premium segment. The sweet spot is well-located urban housing that serves a broad income base--we even manage ARO affordable units alongside market-rate, and that diversification in unit mix creates stability.
I've spent 20+ years running Direct Express Realty in Florida--handling everything from brokerage to property management to construction--so I see how real estate performs from transaction to tenant turnover. Right now I'm bullish on real estate stocks tied to property management and residential services rather than new construction. The reason is simple: existing homeowners are staying put because they locked in sub-4% rates, which creates massive demand for renovation, maintenance, and property management services. Instead of homebuilders, I'd look at companies positioned around the "aging in place" trend and renovation supply chains. We're seeing this at Direct Express--our construction and property management divisions are busier than our brokerage because people are improving what they own rather than moving. Stocks or funds focused on home improvement retail, property management tech platforms, or companies servicing the rental market should outperform traditional homebuilders who are stuck with high inventory costs and rate-sensitive buyers. For geographic markets to avoid, I'd stay away from overbuilt Sunbelt metros where speculative investment buying drove prices up 40-50% in two years. Here in Tampa Bay we're seeing some of that cooling--investors who bought at peak 2022 prices are underwater on cash flow because insurance and taxes exploded while rents plateaued. Any REIT or fund heavily concentrated in these areas bought during the frenzy is facing margin compression that'll take years to recover.
I run a residential and commercial roofing company in DFW, and I'm watching the homebuilding sector from the ground level--we work with builders, renovators, and property owners daily. Right now I'd look at publicly traded homebuilders with strong presences in Texas markets like DFW, Austin, and Houston. We're seeing consistent new construction activity despite higher rates because inventory is still too low and population growth hasn't slowed. The specific play I like is D.R. Horton (DHI). They're the largest homebuilder in the US and have massive exposure to Texas where we operate--they're building at multiple price points and own their land pipeline, which gives them flexibility when material costs shift. We've installed roofs on several of their communities, and their pace hasn't dropped. They're also not overextended in luxury--they build across segments, which is smart when affordability is squeezed. From the roofing side, I'd actually pay attention to companies investing in resilient building technology. We're installing IBHS Fortified Roof systems and Tesla Solar Roofs--builders who adopt these innovations early are capturing buyers willing to pay premiums for lower insurance costs and energy savings. Severe weather in Texas is getting worse (43% of Fort Worth's rain comes from damaging thunderstorms), so disaster-resilient construction is becoming a real competitive advantage. I'd avoid REITs or builders overweight in coastal Florida and Louisiana. We see the insurance data--premiums are spiking and some carriers are pulling out entirely. That fundamentally changes property economics in ways that haven't fully priced in yet.
I run a fourth-generation construction equipment company in Wisconsin, so I watch the real estate market through the lens of what contractors are actually renting and buying. Right now our rental activity tells me residential construction is holding steady but developers are being extremely cautious--they're renting equipment by the week instead of buying, which signals they're not confident enough to commit capital long-term. If I were investing, I'd look at equipment rental REITs like United Rentals rather than direct real estate holdings. When the market is uncertain, contractors rent instead of buy, and we're seeing that shift accelerate. Our rental department has grown significantly even as equipment sales have been choppy--that's a hedge that works in both up and down markets. I'd avoid anything tied to large-scale commercial development in the Midwest. We're not seeing the big earthmoving equipment orders that signal major projects breaking ground. The action is in smaller residential additions, remodels, and infrastructure work--projects that need a skid steer for two weeks, not a fleet of excavators for six months. That split tells you where the actual construction dollars are flowing right now.
I've spent 40 years helping small business owners structure their finances, and I've watched countless clients build wealth through real estate--but rarely through publicly traded stocks. The clients who actually made money in real estate did it through direct ownership of rental properties in smaller Indiana markets where cap rates still make sense, not through REITs that are trading at premiums. From a tax perspective, direct property ownership gives you depreciation deductions and 1031 exchange options that stocks simply can't match. I had a client in Jasper who sold a commercial building last year, rolled the proceeds into three residential rentals in Columbus, and deferred $180K in capital gains while increasing monthly cash flow by 40%. That's the kind of advantage you lose when you're just buying shares. If you're set on stocks, I'd look at regional banks that do commercial real estate lending in secondary markets--not the properties themselves. Places like southern Indiana still have positive population growth and affordable housing, so loan portfolios there have lower default risk than overheated coastal markets. The banks financing those deals often trade at reasonable multiples and pay steady dividends. I'd completely avoid anything tied to luxury residential or Class A office space. My law practice has seen multiple commercial landlords restructure leases this year because tenants either went remote or downsized. The vacancy rates don't show up in quarterly reports until it's too late, and by then the stock's already tanked.
I've been managing commercial real estate portfolios in the Mid-Atlantic since 1987, so I've seen multiple market cycles. Right now I'm bullish on industrial and selective retail, but treating office like it has the plague--especially in urban cores. Our firm just closed deals on several last-mile distribution centers because e-commerce fundamentally changed where money flows in CRE. For specific plays, I'd look at industrial REITs like Prologis or diversified players with strong retail components--avoid anything heavy in traditional office space. We're seeing triple-net lease retail REITs perform well because grocery-anchored centers and necessity-based retail stayed resilient even during COVID. One of our shopping center clients just refinanced at terms that would've been impossible two years ago because their tenant mix (grocery, medical, services) proved recession-resistant. Stay away from downtown Baltimore, DC, and similar metros where office vacancy is pushing 20-25% and banks won't touch the deals. I just watched a major biotech company dump 650,000 square feet in Montgomery County--those landlords are literally considering demolition because the math doesn't work anymore. Federal government return-to-office mandates aren't fixing the fundamental problem that companies need 40% less space than they did in 2019. The numbers don't lie: we're quoting industrial spaces 30-40% higher than pre-pandemic while office rents are dropping and concessions are exploding. Follow the rent growth, not the nostalgia for how things used to work.
I work in HVAC here in Salt Lake City, and I'm seeing something interesting that affects real estate valuations: energy efficiency rebates are completely changing renovation economics. We're installing heat pumps with combined IRS 25C credits (30% back, up to $2,000) plus Utah ThermWise rebates (up to $1,200) and Rocky Mountain Power incentives. Homeowners are upgrading HVAC systems they'd normally just patch, and that's adding real value to properties. The play I'd watch is companies tied to heat pump manufacturing and distribution--residential HVAC upgrades are exploding because the math finally works. We donated a furnace to a family last year, but now we're turning away work because demand is so high for efficiency retrofits. Homeowners locked into 3% mortgages are pouring $15K-30K into HVAC, plumbing, and kitchen remodels instead of moving, and those aren't discretionary anymore with Utah's temperature swings. One risk: avoid overexposure to luxury new construction in markets with extreme climate costs. Indoor air quality concerns and utility bills are making older, inefficient homes harder to sell even in hot markets. The homes we service that haven't upgraded HVAC in 15+ years are sitting longer when listed--buyers are getting savvier about operational costs, not just purchase price.
I'm CEO of GrowthFactor.ai, an AI platform for retail real estate site selection, and spent years in investment banking at Wells Fargo and BDT & MSD before this. My take on real estate investing right now is completely different from what most people are looking at--I'd avoid traditional REIT plays and instead focus on the businesses that are *winning* at real estate execution, not just owning it. **The real money right now is in retailers who treat real estate as a profit center, not a cost center.** Look at companies aggressively expanding with data-driven site selection--we helped Cavender's Western Wear open 27 stores in 6 months (vs 9 the previous year) with 100% hitting revenue targets. Those are the retailers whose stock will outperform because every new location is accretive to earnings, not a gamble. Compare that to legacy retailers sitting on bloated real estate portfolios they can't optimize--Macy's talking about sale-leasebacks is a red flag, not an opportunity. **Specific play: I'd look at off-price retailers like TJX or Burlington** expanding into underserved markets. They're using sophisticated analytics to find locations abandoned by struggling retailers, and their smaller footprint model means lower risk per location. We've seen clients snap up prime locations in bankruptcy auctions while competitors with weaker site selection tools had to guess--that execution gap shows up in comparable store sales growth. **Avoid: any homebuilder or retail REIT that can't articulate their data strategy for site selection.** If a company is still making 10-15 year real estate commitments based on broker opinions and gut feel in 2025, they're bleeding capital. One bad location can eat the profits of three good ones, and you can't fix that with better merchandising or marketing.
I manage marketing for a $2.9M portfolio across 3,500+ multifamily units in cities like Chicago, San Diego, and Minneapolis, and I'm launching The Myles--a 311-unit luxury property in Las Vegas opening 2026. Here's what I'm seeing from the operational side that affects investment decisions. Multifamily properties with robust digital infrastructure are outperforming significantly. When we implemented video tours and UTM tracking across our portfolio, we cut lease-up time by 25% and reduced unit exposure by 50%. Properties that can't demonstrate digital lead attribution are burning marketing dollars--I've seen competitors spend 40% more per lease because they can't pivot budgets based on channel performance data. For specific plays, I'd look at urban infill developments in arts districts and cultural neighborhoods rather than suburban sprawl. We're betting on Las Vegas's Arts District with The Myles specifically because cultural hubs attract younger renters who pay premium prices for walkability and community. Our pricing analysis shows these locations command 15-20% rent premiums over comparable suburban units while maintaining 95%+ occupancy. The risk I'd flag: avoid markets where property management hasn't adopted resident feedback systems. We use Livly to track resident complaints--catching a pattern about oven confusion let us cut move-in dissatisfaction by 30%. Properties without this operational intelligence see higher turnover costs that eat into NOI, which directly impacts stock valuations for REITs holding those assets.
I've worked with businesses in property management and helped clients through dozens of acquisitions, so I've seen what buyers actually care about during due diligence. Right now, I'd look hard at REITs and real estate operators with clean books and strong cash flow management--not sexy, but during my 15+ years doing corporate accounting, the companies that survived downturns always had bulletproof financial operations. One area I'd watch: commercial properties with tenants in software, telecom, and data security. I've done accounting for companies in these sectors, and they're locked into long-term leases because moving their infrastructure is a nightmare. These tenants don't break leases easily, which means predictable income for landlords even when the broader market softens. Avoid anything where the financial modeling looks too optimistic. I've cleaned up enough messy books to know that real estate deals often hide problems in revenue recognition and deferred maintenance. If a fund or stock's projections don't match realistic vacancy rates and capital expenditure needs, that's a red flag I've seen burn investors before.
I manage marketing for a $2.9M budget across 3,500+ multifamily units in Chicago, San Diego, Minneapolis, and Vancouver, so I watch real estate fundamentals closely--they directly impact our occupancy and pricing power. **On the current market:** Multifamily remains strong in urban cores where we operate, but I'm seeing a clear bifurcation. Properties with modern amenities and transparent digital experiences are leasing 25% faster than comparable older buildings. The shift isn't just about granite countertops anymore--it's about operational transparency. When we added unit-level video tours and rich media to our listings, we cut unit exposure time by 50% while competitors sat vacant. Investors should favor REITs and operators investing heavily in digital infrastructure and resident experience platforms, not just physical renovations. **Specific play:** Look at companies invested in walkable urban neighborhoods with strong transit access--our Chicago properties in Uptown near the Red Line consistently outperform suburban assets. We're seeing qualified leads increase 25% year-over-year in these locations while reducing cost-per-lease by 15%. The data tells me renters are prioritizing location and convenience over square footage, which benefits urban-focused multifamily operators. **What to avoid:** Stay away from assets in markets with weak job diversity or single-employer dependence. When negotiating vendor contracts, I analyze competitive sets across our cities, and properties in economically fragile areas require 30-40% higher marketing spend just to maintain occupancy. That eats into NOI fast and signals trouble for investors.
I manage marketing for a portfolio of 3,500+ multifamily units across major cities, and I'm watching residential rental demand closely through our leasing data. Right now we're seeing strong occupancy rates in urban markets, but tenants are more price-sensitive than two years ago--they're touring more units and negotiating harder before signing. For real estate stocks, I'd focus on multifamily REITs in cities with strong job growth and public transit access. We reduced our cost per lease by 15% this year while maintaining budgeted occupancy by shifting marketing dollars to digital channels, which tells me properties that can operate efficiently and attract residents online are positioned to outperform. Look for REITs with properties near transit hubs--our Uptown Chicago location benefits massively from CTA Red Line access, and that drives consistent demand. I'd personally avoid retail-heavy commercial REITs right now. We're spending $2.9M annually on marketing across our portfolio, and almost none of it goes to traditional retail or print anymore--it's all digital, geofencing, and SEO. If marketing dollars aren't flowing to retail spaces, foot traffic isn't either, and that's a problem for landlords depending on brick-and-mortar tenant rents.
I manage marketing for a $2.9M portfolio across 3,500+ multifamily units in Chicago, San Diego, Minneapolis, and Vancouver, so I watch institutional real estate closely. The multifamily sector is showing surprising resilience right now--our Chicago properties are maintaining budgeted occupancy despite rate pressures, and we're seeing qualified leads increase 25% year-over-year through strategic digital spend reallocation. The real opportunity isn't in REITs everyone's watching--it's in the technology infrastructure behind property operations. When we implemented video tour libraries and digital leasing tools in-house, we cut lease-up time by 25% and reduced unit exposure by 50% with zero overhead increase. Companies providing proptech solutions to operators like us are seeing explosive demand because we're all fighting to maintain margins without adding headcount. One area I'd personally avoid: markets with aging Class B/C properties that haven't invested in resident experience technology. We reduced move-in dissatisfaction 30% just by creating FAQ videos based on Livly feedback data--properties that can't adapt to digital-first renters are bleeding residents to competitors. The gap between tech-enabled buildings and traditional management is widening fast, and that shows up in occupancy rates within 12-18 months.
I manage marketing and operations for a 3,500+ unit multifamily portfolio across Chicago, San Diego, Minneapolis, and Vancouver, so I see real estate demand patterns in real-time through our leasing data. Right now, I'd focus on multifamily REITs in urban cores where renter retention is staying strong--our Chicago West Loop property maintains budgeted occupancy even while we cut marketing spend by 4%, which tells me demand for quality urban rentals isn't softening like some headlines suggest. The specific play I like is multifamily properties near major medical districts. We intentionally market our Duncan property to Match Day residents at UIC Hospital, Rush, and Stroger because medical professionals sign leases fast and renew consistently. When we implemented virtual tours and unit-level videos, our lease-up speed increased 25% and unit exposure dropped 50%--that kind of velocity matters for REIT cash flow, and medical district properties have that built-in demand. One area I'd avoid: properties heavily dependent on broker fees and expensive ILS packages to generate leads. We shifted our $2.9M budget away from broker commissions toward digital marketing with UTM tracking, which increased qualified leads by 25% while reducing cost-per-lease by 15%. Properties that can't pivot from old-school leasing tactics are bleeding money on customer acquisition, and that's a red flag for investor returns.
I manage a $2.9M marketing budget across 3,500+ multifamily units in cities like Chicago, San Diego, Minneapolis, and Vancouver, so I track real estate performance through the lens of rent demand, lease velocity, and tenant behavior--not just stock tickers. Right now I'm watching REITs focused on urban multifamily properties in walkable, transit-accessible neighborhoods. These assets are holding occupancy because renters prioritize location over square footage when remote work flexibility lets them skip car ownership. The stock play I like is multifamily REITs with properties near public transit in cities investing heavily in infrastructure. In San Diego, we've seen projects like ShoreLINE drive both housing demand and reduced emissions--our properties near trolley lines lease 25% faster than car-dependent suburbs. Funds concentrated in these transit-oriented developments benefit from consistent occupancy and rent growth because the tenant pool includes everyone from students to professionals who value convenience over homeownership. Skip any real estate stocks tied to luxury developments in oversaturated downtown cores where new supply is flooding the market. When we launched video tours and rich media content across our portfolio, properties in established neighborhoods with limited new construction saw 7% better tour-to-lease conversion than our newer developments competing against twenty other shiny buildings. Markets where everyone built the same amenity package at the same time will see years of rent compression as they fight for the same renters.
I manage marketing for a portfolio of 3,500+ multifamily units across major metros, and what I'm seeing differs from single-family: multifamily REITs with strong urban locations are positioned well because renters are staying put longer. We're tracking 4-6% longer average lease terms than pre-2020, which means stable cash flows for apartment-focused stocks and funds. For specific plays, I'd look at REITs heavily invested in technology infrastructure--properties with fiber, smart building systems, and integrated resident apps. We reduced our cost per lease by 15% using digital tools, and institutional properties doing the same are operating more efficiently while commanding premium rents. That operational edge translates directly to better REIT performance. One area I'd avoid: secondary markets that boomed during remote work but lack the job diversity to sustain it. We've seen Minneapolis stay strong because of healthcare and corporate anchors, while some smaller cities that attracted pandemic migration are now seeing softening demand. Stick with REITs focused on metros with multiple employment sectors, not one-industry towns that got hot temporarily.
What's your outlook on the US real estate market right now, and why? Are real estate and homebuilding stocks looking good right now? Why or why not? My attitude is constructive but selective, given that real estate as a single trade is no more. In today's markets you can observe resilience where leases, pricing power and long-term demand trends are preserved, but also fragility where balance sheets are strained or demand is structurally impaired, which is why investors should think in sectors, not slogans. Homebuilding is a mixed story, too. Sentiment among builders has improved, but it is still below neutral, and builders are relying heavily on incentives and price reductions to clear inventory, which tells you affordability is doing the heavy lifting behind the scenes. At a macro level, the direction of rates matters because REIT valuations and housing demand are both rate-sensitive, but it's not as simple as "rates down equals everything up." There's also a bit of the last remaining bullish fervor based on cutting rates, but this just brings us more in line with 1) Poor affordability and weak consumer confidence which haven't magically reset so to me it's not buy everything housing is back but rather tactical and diversified opportunity. Any real estate or home construction stocks or funds that you like in particular right now, and why? For many investors, the cleanest way to play is through diversified, low complexity funds rather than trying to guess which single name is going to outperform. On the real estate front, wide-ranging REIT E.T.F.s can be a smart core exposure because they disperse risk across many types of properties and operators. A simple example is Vanguard Real Estate ETF (VNQ), which is an inexpensive fund designed to offer diversified access to REITs, including a very well publicized low expense ratio. Another "broad basket" is iShares U.S. Real Estate ETF (IYR), which seeks to track an index of U.S.-based real estate equities and can serve as diversified sector exposure. Any real estate markets or areas investors should avoid, and why? One of bucket is property type (soc), caution is structural. The most obvious example is in office-heavy exposure, because patterns of use and tenant demand have evolved in ways that are not purely cyclical, so the path for recovery becomes murkier than in sectors related to household formation, logistics or essential services.
What's your outlook on the US real estate market right now, and why? Are real estate and homebuilding stocks looking good right now? I am cautiously bullish on the U.S. real estate market but with a touch of rationale focused more -- not just about optimism in general, but more selectivity. Real estate isn't moving as a single asset class anymore and investors are being rewarded for who gets which segments have durable demand and which ones are still in the process of adjusting to structural shifts. Real estate and homebuilding stocks might appear attractive in pockets, especially with strong balance sheets and demand driven by long term housing need rather than short-term speculation, but this is not a market that passive optimism can suffice. Are there any real estate or home construction stocks or funds you like in particular right now, and why? Indeed, for many investors diversified funds still offer a way to gain exposure without taking on single company risk. Broad REIT-focused funds such as the Vanguard Real Estate ETF (VNQ) or iShares U.S. Real Estate ETF (IYR) provide exposure to many property types, helping to level out volatility when some sectors lag. On the housing side, funds like iShares U.S. Home Construction ETF (ITB) or SPDR S&P Homebuilders ETF (XHB) give you access to the broader housing ecosystem — that is, suppliers and related services, along with builders themselves — that may prove to be more resilient than individual bets on the builders alone. Are there any real estate markets or areas investors should avoid, and why? In places where demands assumptions have changed permanently, as opposed to being temporarily softened, investors need to be cautious. Workplace overkill exposure continues to be complex due to altered usage and tenant needs that make recoveries less predictable. I'd also be cautious of very leveraged real estate vehicles that rely on favorable refinancing conditions, as capital structure risk can often trump property level performance in less accommodative money environments.
US real estate feels like a late-inning game with selective winners. Higher rates froze transactions in 2023, but that pause created scarcity. Freddie Mac estimates the US housing shortfall at roughly 3.7 million homes, which continues to support prices even as mortgage rates stay elevated. Homebuilders adapted by buying down rates and preserving margins, allowing stronger operators to outperform. I favor diversified exposure through VNQ, along with industrial REITs tied to logistics and data infrastructure. DHI stands out for scale, disciplined land strategy, and backlog visibility. I would avoid office-heavy and mall REITs, where remote work and declining foot traffic remain structural, not cyclical, risks. Albert Richer, Founder, WhatAreTheBest.com.