AI-Fueled Mini Housing Bubbles Form as Commercial Delinquencies Rise

AI is bringing 6,000 jobs to a small Texan town, and home prices are seeing a sizable jump…but what happens once the job is done? Is this just a mini housing bubble waiting to happen, or is buying near an AI boomtown actually worth the risk? These scenarios may begin popping up more and more—what happens when it’s in your neck of the woods?

We’re back with more headlines on what’s affecting the housing market. AI-induced housing bubbles could be coming in hot as small, overlooked areas of the U.S. turn to boomtowns with more jobs and more housing demand (at least temporarily). If you are going to buy in or around one of these cities, this is what to buy so you don’t get burnt once the construction workers leave.

Fresh distress hits real estate as the “maturity wall” grows even taller. Multifamily delinquencies are up 600% from just a few years ago, and office space is struggling even with so many return-to-office announcements over the past two years. And it’s not just commercial real estate. Flippers are stuck with listings getting stale, with some 2/3 of house flippers seeing longer days on market. How do Henry and James, our house flipping experts, avoid holding a hefty hard money loan while waiting for a property to sell?

In This Episode We Cover

New AI boomtowns forming in small investing markets (and whether you should buy)

Why big properties, even though distressed, may not all fall to foreclosure any time soon

What to buy if you’re investing near a newly approved data center

Why not buying right now could be a huge mistake (even as investors struggle)

The one thing James asks from his lender to save him serious cash when a property won’t sell

And So Much More!

Links from the Show

Join the Future of Real Estate Investing with Fundrise

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Find Investor-Friendly Lenders

“The Largest Infrastructure Buildout in Human History” Could Be a Massive Opportunity For Real Estate Investors

Henry's BiggerPockets Profile

James' BiggerPockets Profile

Kathy's BiggerPockets Profile

Texas Standard: Data center construction spurring a housing crisis in Abilene

CRED IQ: Property Types Feeling the August Heat

HousingWire: Fix-and-flip market shows signs of strain as mortgage rates climb

Grab James’s Book, The House Flipping Framework

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