John Divine is assistant managing editor of investing at US News & World Report, while his colleague Patrick Duffy is senior real estate economist there. In this MoneyShow MoneyMasters Podcast episode, which you can watch here, the three of us discuss the current and future states of the residential and commercial real estate markets – and how investors can navigate shifting industry conditions.

John and Patrick begin by discussing their backgrounds, which include a combined three-plus decades analyzing, researching, consulting for, and writing about the industry. Patrick then shares his take on the housing market, including its two main challenges – and the emerging one that’s bedeviling more home buyers (and owners) in more states with each passing day. John next discusses the “Golden Handcuff” problem, how creative financing structures like “subject-to financing” can help in some cases, and what it all means for publicly traded home builders. In his words: “You can build all the homes you want. But if people can’t afford them…it’s not a great environment.”

Next up is a chat about commercial real estate. Patrick weighs in on multifamily oversupply in the South and the re-emergence of rent control efforts in higher-priced regions...reasons why retail real estate is some office markets are stabilizing because the “extend and pretend” trend is winding down...and more. His overall take: “Like everything else, it’s very sector- and geography-specific.”

John then shares his thoughts on real estate loan and CMBS losses, saying he does NOT expect “utter and total chaos” for one major reason. We start wrapping up with a discussion of REITs as an investment – including why they’ve struggled for the past 12-18 months and the one development John thinks could really get the sector going again. Patrick also opines on why certain REIT subsectors are doing better (and worse) than others.

Finally, John and Patrick conclude with a quick chat about what they will cover at the MoneyShow Masters Symposium Las Vegas, set for Aug. 1-3, 2024 at the Paris Las Vegas. Click here to register