What Do Rising Interest Rates Mean For Real Estate?

What Do Rising Interest Rates Mean For Real Estate: What Investors, Developers, & Business Owners Need to Know //

Conventional opinion says that when interest rates rise, real estate investments and projects funded primarily through debt become less feasible.

But that only tells part of the story.

The cost to borrow funds is in fact increasing, but that doesn't necessarily spell disaster for the economy or real estate markets in general.

Especially during periods of high inflation when the "real" rate of interest may actually be negative.

That doesn't negate the fact that the parameters have changed though - and as an investor, real estate developer, or business owner, you need to arm yourself with the information to make informed decisions in any operating environment.

This video breaks down the impacts of rising interest rates on the real estate market - we examine several broad categories:
the impact on the overall economy
the impact on the home buying market
the impact on real estate investors
the impact on developers
the impact on business owners

There are no steadfast rules as to how markets and the overall economy will react to these changes.

We have the laws of economics and experience from past cycles to inform our decision-making.

⌛ Timestamps ⌛
0:00 Introduction
0:33 What's happening with interest rates?
1:17 The impact on the overall economy
2:38 The impact on the home buying market
4:03 Should real estate investors be concerned?
6:40 The effect on real estate developers
8:11 Should business owners be wary of rising rates?
9:16 What does it all mean?

Our mission at Marsh & Partners is to help educate and guide business owners, investors, and developers through the complex world of real estate decision-making.

We're bullish on the freedom real estate provides, as both a passive investment and long-term wealth creation vehicle.

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