How to Money · Friday, July 3, 2026
Joel and Matt note that the landscape for real estate investors has significantly changed over the past decade. They explain that rising home prices and interest rates, coupled with low inventory, have made housing affordability the worst it's been in 40 years, thus making it harder to find profitable rental properties.
“But when the reality on the ground changes, so does our advice. And it's not that real estate investing doesn't make sense for anyone at any point in time, or for anyone right now, but the truth is that it just makes less sense.”
“And that's because home prices have gone up dramatically over the past few years, and interest rates have gone up in a major way over the past twelve months as well.”
“It felt like shooting fish in a barrel kind of in twenty eleven twenty twelve when housing prices were basically at their bottom. But in addition to current trends, it's important to note that real estate doesn't perform as well as the market does from a return standpoint on a historical basis.”