At a Glance:<\/strong><\/h2>\n\n- \n
\n- \n
Housing starts and permits have fallen sharply in 2025.<\/p>\n<\/li>\n
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Real estate markets are floundering.<\/p>\n<\/li>\n
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That doesn\u2019t bother me in the least, and it shouldn\u2019t bother you either ![\"\ud83d\ude0a\"](\"https:\/\/s.w.org\/images\/core\/emoji\/17.0.2\/72x72\/1f60a.png\")
<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
In the five months from March to August,<\/span>\u00a0<\/span>residential construction permits<\/span><\/a>\u00a0fell 10.2%. (We don\u2019t have data for September, because we don\u2019t have a functioning government.)<\/span><\/p>\nFrom February to August,<\/span>\u00a0<\/span>housing starts<\/span><\/a>\u00a0fell 12.3%.<\/span><\/p>\nWhy are homebuilders pulling back?<\/span><\/p>\nEven more importantly, what does all this mean for us as real estate investors?<\/span><\/p>\n<\/div><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n\n\n\n\nDisclaimer<\/h5>\n\nThe information provided on this website is for general informational purposes only and should not be construed as legal, financial, or investment advice.\u00a0<\/span><\/p>\nAlways consult a licensed real estate consultant and\/or financial advisor about your investment decisions.\u00a0<\/strong><\/p>\nReal estate investing involves risks; past performance does not indicate future results. We make no representations or warranties about the accuracy or reliability of the information provided.\u00a0<\/span><\/p>\nOur articles may have affiliate links. If you click on an affiliate link, the affiliate may compensate our website at no cost to you. You can view our <\/span>Privacy Policy<\/span><\/a> here for more information.\u00a0<\/span><\/p>\n <\/p>\n<\/div><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n
\n\n\n\n\t\t\t\t![\"Supply](\"https:\/\/sparkrental.com\/wp-content\/uploads\/2025\/10\/Supply-crash.jpg\" "\\"Supply")
<\/span>\n\t\t\t<\/div>\n\n\nDrop in New Construction<\/span><\/h2>\n<\/span><\/p>\nThe housing market isn\u2019t what it was during and after the pandemic.<\/span><\/p>\nNationwide,<\/span>\u00a0<\/span>Zillow<\/span><\/a>\u00a0reports flat (0.1%) home price growth year-over-year. In many markets, home prices have fallen 2-5%.<\/span><\/p>\nRents have fared even worse,<\/span>\u00a0<\/span>falling 0.4%<\/span><\/a>\u00a0over the last year.\u00a0\u00a0<\/span><\/p>\nPlus, higher interest rates have led to higher cap rates, which caused multifamily properties to<\/span>\u00a0<\/span>drop 25-30% in value<\/span><\/a>\u00a0from 2022 to 2025.<\/span><\/p>\nYou can see why homebuilders aren\u2019t so keen to start new projects right now.<\/span><\/p>\n<\/div><\/div>\n<\/p><\/div>\n<\/p><\/div>\n\n\n\n\n(article continues below)<\/em><\/p>\n<\/div><\/div>\n\n\nReal estate investments? Awesome.<\/strong><\/h5>\nBeing a landlord? Less fun.<\/strong><\/h5>\nLearn how to earn 15%+ on passive real estate investments in our free video course.<\/p>\n<\/div><\/div>\n
\n\t\t\t\t![\"Course:](\"https:\/\/sparkrental.com\/wp-content\/uploads\/2024\/10\/Katie-Millie-Hiking.jpg\" "\\"Katie")
<\/span><\/a>\n\t\t\t<\/div>\n\n\t\t\t\tAccess Free Course<\/a>\n\t\t\t<\/div>\n<\/p><\/div>\n<\/p><\/div>\n\n\n\n<\/div>\n<\/div>\n\n<\/div>\n<\/div>\n\n\nWhat\u2019s Coming in 2026?<\/span><\/strong><\/h3>\nAfter a surge in new construction between 2021-2025, a breather in homebuilding will help demand catch up to new supply. That will drive rents higher in 2026.<\/span><\/p>\nRCL<\/span><\/a>\u00a0summarizes it like this: \u201cSlowing new supply and strong renter demand set the stage for tighter markets and rising rents in 2026 and beyond.\u201d<\/span><\/p>\n<\/span><\/p>\nWhat About Interest Rates?<\/span><\/strong><\/h3>\nThe Federal Reserve has signaled lower interest rates in late 2025 through 2026.<\/span><\/p>\nLower interest rates mean lower cap rates, which mean higher property prices.<\/span><\/p>\nAll of which makes now a tempting time to invest in real estate projects \u2013 if you plan to hold for a few years.<\/span><\/p>\nFlippers? They\u2019ll likely struggle over the next year.<\/span><\/p>\n<\/div><\/div>\n<\/p><\/div>\n<\/p><\/div>\n\n\n\n<\/div>\n<\/div>\n\n\nWant to compare investment property loans?<\/a><\/h4>\n![\"\"](\"https:\/\/sparkrental.com\/wp-content\/uploads\/2023\/06\/investment-property-loans-1030x599.jpg\")
<\/p>\n
What do lenders charge for a rental property mortgage<\/strong>? What credit scores and down payments do they require?<\/p>\nHow about\u00a0fix-and-flip loans<\/strong>?<\/p>\nWe compare the best purchase-rehab lenders and long-term landlord loans on LTV, interest rates, closing costs, income requirements and more.<\/p>\n<\/div><\/div>\n
\n<\/div>\n<\/div>\n\n\t\t\t\tCompare Investor Loans<\/a>\n\t\t\t<\/div>\n\n<\/div>\n<\/div><\/div>\n<\/p><\/div>\n\n\n\n\nSo What Am I Doing?<\/span><\/strong><\/h3>\n<\/span><\/strong><\/p>\nI\u2019m doing the same thing I do every month: I continue investing.<\/span><\/p>\nThree years ago was a great time to sell but a bad time to buy.<\/span><\/p>\nNow it\u2019s become a good time to buy.<\/span><\/p>\nBut regardless of what happens in the market, I keep investing. I practice\u00a0<\/span>dollar cost averaging<\/span><\/a>, because I don\u2019t believe in timing the market.<\/span><\/p>\nEvery month, I invest $5,000 in a hands-off real estate project as a member of the<\/span>\u00a0<\/span>Co-Investing Club<\/span><\/a>. Just like every month I invest money in the same stock index funds, regardless of whether the market\u2019s up or down.<\/span><\/p>\nHave questions about how it works? We get that. Most people aren\u2019t familiar with passive real estate investments.<\/span><\/p>\nThat\u2019s why Deni and I make ourselves available for 30+ minutes every Thursday at 3:30 EST on an<\/span>\u00a0<\/span>open Zoom call<\/span><\/a>.\u00a0<\/span>Show up today at 3:30 EST and ask us about anything that\u2019s on your mind<\/span><\/strong>!<\/span><\/p>\n<\/div><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n\n\n\n\n\nConnect with us on social!<\/h4>\n<\/div><\/div>\n<\/p><\/div>\n\n\n
- \n
- \n
Housing starts and permits have fallen sharply in 2025.<\/p>\n<\/li>\n
- \n
Real estate markets are floundering.<\/p>\n<\/li>\n
- \n
That doesn\u2019t bother me in the least, and it shouldn\u2019t bother you either
<\/p>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\nIn the five months from March to August,<\/span>\u00a0<\/span>residential construction permits<\/span><\/a>\u00a0fell 10.2%. (We don\u2019t have data for September, because we don\u2019t have a functioning government.)<\/span><\/p>\n
From February to August,<\/span>\u00a0<\/span>housing starts<\/span><\/a>\u00a0fell 12.3%.<\/span><\/p>\n
Why are homebuilders pulling back?<\/span><\/p>\n
Even more importantly, what does all this mean for us as real estate investors?<\/span><\/p>\n<\/div><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n
\n\n\n\nDisclaimer<\/h5>\n
\nThe information provided on this website is for general informational purposes only and should not be construed as legal, financial, or investment advice.\u00a0<\/span><\/p>\n
Always consult a licensed real estate consultant and\/or financial advisor about your investment decisions.\u00a0<\/strong><\/p>\n
Real estate investing involves risks; past performance does not indicate future results. We make no representations or warranties about the accuracy or reliability of the information provided.\u00a0<\/span><\/p>\n
Our articles may have affiliate links. If you click on an affiliate link, the affiliate may compensate our website at no cost to you. You can view our <\/span>Privacy Policy<\/span><\/a> here for more information.\u00a0<\/span><\/p>\n
<\/p>\n<\/div><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n
\n\n\n\n\t\t\t\t
<\/span>\n\t\t\t<\/div>\n\n\nDrop in New Construction<\/span><\/h2>\n
<\/span><\/p>\n
The housing market isn\u2019t what it was during and after the pandemic.<\/span><\/p>\n
Nationwide,<\/span>\u00a0<\/span>Zillow<\/span><\/a>\u00a0reports flat (0.1%) home price growth year-over-year. In many markets, home prices have fallen 2-5%.<\/span><\/p>\n
Rents have fared even worse,<\/span>\u00a0<\/span>falling 0.4%<\/span><\/a>\u00a0over the last year.\u00a0\u00a0<\/span><\/p>\n
Plus, higher interest rates have led to higher cap rates, which caused multifamily properties to<\/span>\u00a0<\/span>drop 25-30% in value<\/span><\/a>\u00a0from 2022 to 2025.<\/span><\/p>\n
You can see why homebuilders aren\u2019t so keen to start new projects right now.<\/span><\/p>\n<\/div><\/div>\n<\/p><\/div>\n<\/p><\/div>\n
\n\n\n\n(article continues below)<\/em><\/p>\n<\/div><\/div>\n
\n\nReal estate investments? Awesome.<\/strong><\/h5>\n
Being a landlord? Less fun.<\/strong><\/h5>\n
Learn how to earn 15%+ on passive real estate investments in our free video course.<\/p>\n<\/div><\/div>\n
\n\t\t\t\t
<\/span><\/a>\n\t\t\t<\/div>\n\n\t\t\t\tAccess Free Course<\/a>\n\t\t\t<\/div>\n<\/p><\/div>\n<\/p><\/div>\n\n\n\n<\/div>\n<\/div>\n\n<\/div>\n<\/div>\n\n\nWhat\u2019s Coming in 2026?<\/span><\/strong><\/h3>\n
After a surge in new construction between 2021-2025, a breather in homebuilding will help demand catch up to new supply. That will drive rents higher in 2026.<\/span><\/p>\n
RCL<\/span><\/a>\u00a0summarizes it like this: \u201cSlowing new supply and strong renter demand set the stage for tighter markets and rising rents in 2026 and beyond.\u201d<\/span><\/p>\n
<\/span><\/p>\n
What About Interest Rates?<\/span><\/strong><\/h3>\n
The Federal Reserve has signaled lower interest rates in late 2025 through 2026.<\/span><\/p>\n
Lower interest rates mean lower cap rates, which mean higher property prices.<\/span><\/p>\n
All of which makes now a tempting time to invest in real estate projects \u2013 if you plan to hold for a few years.<\/span><\/p>\n
Flippers? They\u2019ll likely struggle over the next year.<\/span><\/p>\n<\/div><\/div>\n<\/p><\/div>\n<\/p><\/div>\n
\n\n\n<\/div>\n<\/div>\n\n\nWant to compare investment property loans?<\/a><\/h4>\n
<\/p>\nWhat do lenders charge for a rental property mortgage<\/strong>? What credit scores and down payments do they require?<\/p>\n
How about\u00a0fix-and-flip loans<\/strong>?<\/p>\n
We compare the best purchase-rehab lenders and long-term landlord loans on LTV, interest rates, closing costs, income requirements and more.<\/p>\n<\/div><\/div>\n
\n<\/div>\n<\/div>\n\n\t\t\t\tCompare Investor Loans<\/a>\n\t\t\t<\/div>\n\n<\/div>\n<\/div><\/div>\n<\/p><\/div>\n\n\n\n\nSo What Am I Doing?<\/span><\/strong><\/h3>\n
<\/span><\/strong><\/p>\n
I\u2019m doing the same thing I do every month: I continue investing.<\/span><\/p>\n
Three years ago was a great time to sell but a bad time to buy.<\/span><\/p>\n
Now it\u2019s become a good time to buy.<\/span><\/p>\n
But regardless of what happens in the market, I keep investing. I practice\u00a0<\/span>dollar cost averaging<\/span><\/a>, because I don\u2019t believe in timing the market.<\/span><\/p>\n
Every month, I invest $5,000 in a hands-off real estate project as a member of the<\/span>\u00a0<\/span>Co-Investing Club<\/span><\/a>. Just like every month I invest money in the same stock index funds, regardless of whether the market\u2019s up or down.<\/span><\/p>\n
Have questions about how it works? We get that. Most people aren\u2019t familiar with passive real estate investments.<\/span><\/p>\n
That\u2019s why Deni and I make ourselves available for 30+ minutes every Thursday at 3:30 EST on an<\/span>\u00a0<\/span>open Zoom call<\/span><\/a>.\u00a0<\/span>Show up today at 3:30 EST and ask us about anything that\u2019s on your mind<\/span><\/strong>!<\/span><\/p>\n<\/div><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n
\n\n\n\n\nConnect with us on social!<\/h4>\n<\/div><\/div>\n<\/p><\/div>\n
\n\n
![\"\"](\"https:\/\/sparkrental.com\/wp-content\/uploads\/2019\/03\/sparkrental-on-facebook.jpg\" "\\"\\"")
<\/span><\/a>\n\t\t\t<\/div>\n<\/p><\/div>\n![\"\"](\"https:\/\/sparkrental.com\/wp-content\/uploads\/2019\/03\/sparkrental-on-instagram.jpg\" "\\"\\"")
<\/span><\/a>\n\t\t\t<\/div>\n<\/p><\/div>\n![\"\"](\"https:\/\/sparkrental.com\/wp-content\/uploads\/2019\/03\/sparkrental-on-twitter.jpg\" "\\"\\"")
<\/span><\/a>\n\t\t\t<\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n