Epic Real Estate Investing - 5 Real Estate Hotspots to Rethink for 2025 | 1456

Episode Date: April 1, 2025

This episode reveals five of America's hottest real estate markets that are showing serious warning signs heading into 2025: Tampa, Florida; Phoenix, Arizona; Austin, Texas; Boise, Idaho; and the San Francisco Bay Area. It explains the reasons behind these market shifts, including affordability issues, climatic challenges, and infrastructure strains. Additionally, the episode offers alternative investment locations and emphasizes the importance of timing in real estate investments. The episode concludes with insights on an upcoming real estate investment opportunity and a free training session designed to help viewers start their real estate journey. https://lunchbreakdeals.com/ Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Hey, strap in. It's time for the epic real estate investing show. We'll be your guides as we navigate the housing market, the landscape of creative financing strategies, and everything you need to swap that office chair for a beach chair. If you're looking for some one-on-one help, meet us at rei-i-a's.com. Let's go, let's go, let's go, let's go, let's go, let's go.

Let's go. New data shows five of America's hottest real estate markets are flashing serious warning signs for 2025. And these aren't random cities. Their markets' experts have been hot on for years. By the end of this, you'll know which major markets to reconsider why timing matters now more than ever and where the smart money is moving instead. That's waste no time. Number five, Tampa, Florida. Remember when Tampa's home prices shot up 30% in just one year?

Well, that party's over. Today, Tampa's prices are barely growing at just 1.7%. this year. It's like going from sprinting to crawling. Yes, Tampa has plenty of jobs in banking, healthcare, and tourism. The problem, these jobs don't pay enough for people to afford $400,000 homes. And that Florida migration trend, it's reversing as living costs skyrocket, especially insurance. Get this, about one in five Florida homeowners has dropped their insurance completely because it's too expensive. I mean, imagine driving a car without insurance. That'd be incredibly risky. But Tampa faces even bigger challenges that nobody's talking about. The Gulf waters or

warming, making Tampa a bigger hurricane target. Hurricane Ian was just a preview, and it's not just the storms, it's what they're doing to the housing market. Insurance companies are either going bankrupt or leaving Florida entirely. If you find insurance, brace yourself. You'll pay two to three times what you paid a few years ago. That's basically adding another mortgage payment just for insurance. Late 23 and all the way through 24 data shows parts of Tampa actually seeing price drops. Fancy condos and suburban homes are sitting on the market longer and longer. And here's the scariest part about Tampa. When you buy there, you're betting against Mother Nature herself.

Between hurricanes, flooding risks, and insane insurance costs, Tampa's real estate market is standing on shaking ground. Now, does this mean Tampa's a complete disaster? No, not exactly. But if you're thinking about investing there in 2025, be extremely careful. The days of easy Tampa profits are likely over. If you want a better option, consider Atlanta, Georgia, or Charlotte, North Carolina, Carolina. You'll get the same sunny weather without the extreme hurricane risks and insurance nightmare. Number four, Phoenix, Arizona. Everyone's been saying Phoenix is the place to be. Even me recently.

Well, hold on, because this desert hotspot is cooling off faster than anyone expected. During the pandemic, Phoenix was on fire. Home prices jumped over 40% in just two years. Everyone fled there, especially from expensive California. But now, prices dropped 6 to 8% last year and are barely growing at just 2%. well below the national average of 4%. Here's the real problem. Those tech companies and new jobs, they're still coming, but they aren't paying enough to match the high home prices. Phoenix suddenly has California prices without California paychecks.

And the weather? Summer of 2024 saw 100 straight days over 100 degrees. Some new residents are already packing up and leaving. Then there's the water crisis. Being in the desert, Phoenix is getting less Colorado river water. And officials question if they'll have enough for all. those new homes. And speaking of those new homes, builders went wild constructing houses everywhere. Now there's so much inventory that sellers can't find buyers. It's a buyer's market, except

buyers are having second thoughts too. Here's a surprising number. Phoenix is still growing, but only at 1.6% per year now, way slower than during the boom. And if people keep rethinking life in a place where their car might melt in the summer, well, you get the picture. Some experts predict Phoenix might see even more price drops in 2025, not what investors want to hear. For Southwest investing, consider Southeast like Atlanta. Instead, you'll get growth and sunshine without the extreme heat and water problems Phoenix face. Number three, Austin, Texas. Everyone talks about Austin like it's the next Silicon Valley, Tesla, Oracle, all the big tech companies moving in. But check this out. The real numbers. Austin home prices dropped about 10% between 22 and 23. One of the biggest,

This drops nationwide. Prices have now stopped falling, but they're only inching up 1 to 2%. The average home still costs about $550,000, 40% higher than pre-pandemic. And here's what's really happening in Austin. Yes, there are tech jobs, and the city's growing, but those massive tech layoffs hit Austin hard, and Austin's growing so fast the city can't keep up. Traffic is nightmarish, and the utilities are struggling. Consider this.

About 6% of Austin's population in one recent year were newcomers. Sounds great, right? Yeah, but many of those same people are already leaving. Why? It's gotten so expensive, even the newcomers can't afford it anymore. And then, get this, Austin built new homes like crazy during the boom. Now, there are too many luxury homes and fancy condos with not enough people who can afford them. When local incomes can't support $500,000 plus homes and Texas has those high property taxes, that's a real problem.

Then there's the Texas heat. Austin might not have hurricanes like Florida, but those insane heat waves strain the power or grid and water supply. And those traffic jams, some people spend hours stuck in traffic daily. Bottom line with Austin, the days of easy real estate money are over. If you bought during the hype, adjust your expectations. Want a better option? Look at San Antonio or Dallas-Fort Worth. You still get that Texas business-friendly environment with better value and less volatility than Austin. Before we get to number two, here's the bigger issue these markets reveal. The real estate game is changing dramatically. What worked in 2020 through 22 is becoming dangerous.

in 25. Think about what we've seen so far. Tampa, dealing with an insurance crisis, pricing people out. Phoenix facing serious climate and water issues in Austin, growing so fast it's choking on its own success. These aren't random corrections. They're warning signs of a fundamental shift in real estate investing. The old playbook of chasing hot markets and riding the appreciation wave is putting investors at serious risk. And it gets worse. Our next two markets show how even the most sure-bet locations in America face challenges almost nobody saw coming. Number two, Boise, Idaho. You want to see what happens when a real estate market goes from Hero to zero?

Look at Boise. It's almost painful to watch. During the pandemic, Boise home prices shot up almost 50% in just one year. People couldn't buy houses fast enough. Now, Boise was one of the first and really the only market to crash. We're talking a 10 to 12% drop, and by late 22, almost 70% of homes for sale had to cut their prices. Ouch. And here's why Boise's story matters. The pandemic brought remote workers with big city salaries. The problem, Boise's local job market isn't built to replace those high-paying remote jobs if people lose them or return to offices. Remember when everyone fled California for Idaho? That flood

has slowed to a trickle. Why? Boise isn't affordable anymore. Those $400,000 plus home prices are way beyond what local salaries support. Experts say Boise was 72% overvalued at the peak. That's like paying filet mignon prices for hamburger. And here's the timing disaster. Builders rushed to build when everyone was buying. All those homes finished just as buyers disappeared. I don't know, maybe there's an opportunity there. But there's another problem nobody mentions.

Investing in smaller cities like Boise makes it harder to sell quickly if things go wrong. When the market turned, Boise led the nation in price cuts because there just weren't enough buyers. Even the weather is becoming an issue there. Those beautiful Idaho summers are interrupted by longer wildfire seasons. And with more residents, there are serious questions about water supply too. If you want a better option, consider Indianapolis or Columbus. They never joined the hype, offering steady growth without the boom and bust drama. Now, what we're seeing in Boise is just the tip of the iceberg.

A dangerous pattern is unfolding across the country. Every market we've covered has a different reason for struggling. Climate issues, affordability crisis, job market problems, population shifts. Here's what's truly frightening. These aren't normal market cycles anymore. Entire cities, once considered can't miss investments, are becoming risk zones. Investors who jumped in during the boom are stuck with properties they can't sell for what they paid. Many face negative cash flow from buying at peak prices. And it's about to get even worse,

as our number one market reveals something truly alarming about where real estate might be headed in 2025. This isn't just another cooling market. It's a wake-up call about the future of real estate investing itself. Number one, the San Francisco Bay Area. Now, this might surprise you. maybe it shouldn't. The Bay Area wants the ultimate sure thing in real estate shows how dramatically things can change. The shocking number here is San Francisco home prices dropped 13.4% in one year. That's a $220,000 drop on average. The biggest price plunge of any major U.S. city. And we're still talking about homes with an average price tag of $1.1 million. Try making those numbers work with today's 7% interest rates. But here's the real story. Remember when Silicon Valley

was the unstoppable job machine. Those days, they might be over. Major tech companies are cutting back or relocating jobs. Office buildings sit empty, 30% vacancy rates. With remote and hybrid work, fewer people need to live in the Bay Area.

Nearly half the residents are thinking about leaving. Their top reason, housing costs. The population is already down 2.2% from 2020. That's 51,000 people gone from the city. The craziest part, they built fancy, expensive apartments and homes regular people can't afford.

Average rents, it's $3,800. If you can't afford to rent, good luck trying to buy. And that's not the end of it. The city faces serious problems, strict rent controls, high taxes, and a major homelessness crisis. Even the weather's turning against them with wildfires filling the city with smoke every year. Think about this. If San Francisco, the poster child for unstoppable real estate growth, can fall this hard, what does that tell us about other markets?

If you want a better option, consider Raleigh, Durham, or Denver. You still get the tech-driven economy without San Francisco's extreme prices and problem. Now, here's the thing, and pay close attention because this might be the most important thing you'll hear all year. While everyone worries about hot markets cooling off, something much bigger is happening. The smart money, Wall Street, and big institutional investors, they're quietly preparing to jump back in. They see what most people are missing. You see, we're headed into what might be the perfect storm, but in a good way, if you're on the right side of it. Here's the simple breakdown. First, hardly anyone's building

new housing right now. What's finishing right now started years ago. After that, there's going to be a huge gap. Not enough homes, not enough apartments, not enough anything. Second, more people than ever are forced to rent instead of buy. With high interest rates and home prices, most people can't afford to buy anymore. They have to rent. So what happens with more renters but fewer places to rent? Rents go up. And who makes money when rents rise? The owners. So here's the opportunity. While everyone else is scared, we're seeing some of the best real estate deals in years. There's a small window right now before big money rushes back in and drives prices up again. So here's the real deal. In the next few years, there will be only two types of people, those paying rent and those

collecting it. Which side do you want to be on? Because real estate isn't just about making money. It's about making sure you and your family are on the right side of what's coming. But I know what you're thinking. Matt, I get it. I should own more real estate. But I've got to busy job, I've got responsibilities, I've got a family. I mean, I barely have time for lunch, let alone figure out real estate investing. That's exactly why I created something special just for you, a free virtual on-demand training that shows you how to get your first real estate done using just your lunch break. I put the link down below, but let me tell you about Omar. He was just like you, busy career, full-time job, and worried about making real estate mistakes.

In March 2019, he used this exact system for his first deal. What happened to Next, his confidence went through the roof. He bought his second property while sitting in the Denver airport. Today, he owns over 20 properties. But none of that would have happened without that crucial first deal. So in this free training, I'm going to show you everything that I showed, Omar, the lunch break deal finder system to evaluate properties in just 15 minutes. How to build your power team so others do the heavy lifting, perfect if you're short on time, and the exact checklist to avoid messing up your first deal.

Your first deal, it doesn't have to be perfect. It just needs to get done. And if you've got a stable job and good credit, you're in the perfect position to do this. You'll see the link below. No fluff, no theory, just practical steps to get your first deal closed. There's this small window of opportunity right now before the market runs away from most people. The question is, will you run with it or will you be left behind? I'll see you next time.

Take care. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them. And ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I. Health, peace, blessings, and success to you.

A Metterio. Living the dream. Yeah, yeah, we got the cash flow. You didn't know home for us. We got the cash flow. This podcast is a part of the C-suite radio network. For more top business podcasts, visit c-sweetradio.com.