Should you ride the price wave?

Seattle, Portland, San Francisco

2021/10/04

During a pandemic, many people don't want to sell and move; therefore, home availability falls, bidding wars start, and all of a sudden prices rise. Despite the pandemic, the population ↑ > 2% last year in Boise, Austin, Provo, Phoenix and a fist-full of Florida markets due to their thriving economies. The market danger is that they're already overpriced that you'll be buying in at a much higher price than your rents can support. It’s wiser to invest in apartments, particularly those catering to the middle or upper-middle renters, not the top or bottom. Another danger is an actual bust in prices; despite the current economic growth, prices can only go up so high before buyers baulk. In markets with higher prices but more moderate population growth (Salt Lake City, Tacoma, Stockton, Knoxville, Portland Maine, Kansas City), the wave probably lasts more.