It's all a massive crap show. Pretty much every market is clown world at the moment.
Real estate is a bit of a tricky one though, since it varies based on the sector. SFR are up yes, but that's kind of normal since interest rates are so low, meaning more people are able to qualify for loans and thus buy a home. Likewise, Millennials are reaching home buying age, which is also driving up price. So SFRs are probably slightly inflated, but not as much as you'd think when you consider all the factors.
Hospitality is WAY down because it's still recovering from last year. Retail, despite what the media would have you believe, is actually roughly the same as it was pre-pandemic. Multifamily basically never changed, it remained steady through the pandemic despite all the fear mongering, and it just stayed on track. So it's not really inflated at all beyond the "normal cabal inflation". Office is actually rebounding pretty well considering last year. Co-working and flex office space is becoming really popular for hybrid work from home set ups as well as start ups and small businesses. That's driving office space back into the forefront. It's not really inflated, it's just more in demand. The actual price has actually remained pretty steady, it's just more building owners are renovating to answer demand for non traditional office space, hence the slight increase in price and rent since most of these buildings are newly renovated.
Industrial is the weird one. There's a MASSIVE demand for industrial right now, so it should be inflated, but at the same time, because of the overwhelming demand, the competition is remaining competitive and keeping pricing and cap rates in line with one another.
Then there's all of the "alternative" sectors. Farmland is going up, but that's normal, since Farmland is the one asset that never goes down. It's basically THE safest investment you can make. Data centers are up, but I'm not very familiar with them so I won't comment much. Healthcare real estate is basically crashing since hospitals and medical offices are closing due to rejecting patients that won't take the jab, so that's probably the most hit sector.
Basically, what I'm trying to say is, real estate is a little crazy, but it's still pretty "normal" all things considered. SFR are really the only easily accessible real estate asset currently affected by everything, and even then it's pretty negligible if you're buying with the intention to rent it out rather than live there. SFRs are treated differently than main residences for valuation purposes. The value of a SFR comes from the cash flow, so as long as you cashflow, your property value doesn't really go down. That's how people actually saw properties increase in value during the 2008 recession. Their rental properties actually increased in value, rather than crash like everything else, because they cash flowed.
That being said, this is all looking at thing from a long term investment horizon (since that's how I tend to look at investments). Short-medium term investors that intend to go for value add "rehab" properties and flip them are probably screwed by this a lot more since there are basically zero good deals for value add properties on the market right now.
It's all a massive crap show. Pretty much every market is clown world at the moment.
Real estate is a bit of a tricky one though, since it varies based on the sector. SFR are up yes, but that's kind of normal since interest rates are so low, meaning more people are able to qualify for loans and thus buy a home. Likewise, Millennials are reaching home buying age, which is also driving up price. So SFRs are probably slightly inflated, but not as much as you'd think when you consider all the factors.
Hospitality is WAY down because it's still recovering from last year. Retail, despite what the media would have you believe, is actually roughly the same as it was pre-pandemic. Multifamily basically never changed, it remained steady through the pandemic despite all the fear mongering, and it just stayed on track. So it's not really inflated at all beyond the "normal cabal inflation". Office is actually rebounding pretty well considering last year. Co-working and flex office space is becoming really popular for hybrid work from home set ups as well as start ups and small businesses. That's driving office space back into the forefront. It's not really inflated, it's just more in demand. The actual price has actually remained pretty steady, it's just more building owners are renovating to answer demand for non traditional office space, hence the slight increase in price and rent since most of these buildings are newly renovated.
Industrial is the weird one. There's a MASSIVE demand for industrial right now, so it should be inflated, but at the same time, because of the overwhelming demand, the competition is remaining competitive and keeping pricing and cap rates in line with one another.
Then there's all of the "alternative" sectors. Farmland is going up, but that's normal, since Farmland is the one asset that never goes down. It's basically THE safest investment you can make. Data centers are up, but I'm not very familiar with them so I won't comment much. Healthcare real estate is basically crashing since hospitals and medical offices are closing due to rejecting patients that won't take the jab, so that's probably the most hit sector.
Basically, what I'm trying to say is, real estate is a little crazy, but it's still pretty "normal" all things considered. SFR are really the only easily accessible real estate asset currently affected by everything, and even then it's pretty negligible if you're buying with the intention to rent it out rather than live there. SFRs are treated differently than main residences for valuation purposes. The value of a SFR comes from the cash flow, so as long as you cashflow, your property value doesn't really go down. That's how people actually saw properties increase in value during the 2008 recession. Their rental properties actually increased in value, rather than crash like everything else, because they cash flowed.
That being said, this is all looking at thing from a long term investment horizon (since that's how I tend to look at investments). Short-medium term investors that intend to go for value add "rehab" properties and flip them are probably screwed by this a lot more since there are basically zero good deals for value add properties on the market right now.