{"id":184915,"date":"2025-09-25T13:27:05","date_gmt":"2025-09-25T19:27:05","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=184915"},"modified":"2025-09-25T13:27:08","modified_gmt":"2025-09-25T19:27:08","slug":"sunbelt-overload-how-timing-the-turn-with-connect-invest-can-protect-your-capital","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/sunbelt-overload-how-timing-the-turn-with-connect-invest-can-protect-your-capital","title":{"rendered":"Sunbelt Overload: How Timing the Turn with Connect Invest Can Protect Your Capital"},"content":{"rendered":"\n

This article is presented by <\/span>Connect Invest<\/span><\/a>.<\/span><\/em><\/p>\n\n\n\n

The Sunbelt area is facing a housing slowdown. <\/span>Metro regions in Austin, Phoenix, and Tampa <\/span>saw<\/span> a <\/span>multifamily<\/span><\/a> construction boom in 2023 and 2024, <\/span>which pushed<\/span> vacancies <\/span>to<\/span> nearly 15%.<\/span> This oversupply has <\/span>dragged<\/span> rent prices <\/span>down<\/span> in some areas, contributing to sluggish investor returns.<\/span>  <\/span><\/p>\n\n\n\n

While <\/span>LeaseLock<\/span><\/a> data <\/span>shows<\/span> that the U.S. housing market is starting to recalibrate in some Sunbelt metros <\/span>like<\/span> Tampa and Houston, it <\/span>might<\/span> take <\/span>a while<\/span> to rebound.<\/span> Areas in once-hot markets are now taking longer to sell, as homeowners are losing hope of having a 3% mortgage rate.  <\/span><\/p>\n\n\n\n

Inventory Overload and Investor Risk <\/span><\/h2>\n\n\n\n

This surge in supply means the area\u2019s housing market is cooling. Inventory across the U.S. has been rising steadily all summer, with the strongest growth in the West and South, according to data from <\/span>Realtor.com<\/span><\/a>.<\/span> <\/span><\/a><\/p>\n\n\n\n

While an increase in supply is usually a good thing in real estate markets, buyers aren\u2019t biting. <\/span><\/p>\n\n\n\n

Mortgage rates are high. <\/span>Many of what\u2019s for sale are larger homes <\/span>and<\/span> not what buyers are looking for.<\/span> The jobs market is in low gear, while inflation has climbed, meaning buyers might be holding off or looking to downsize. <\/span>This oversupply increases the risk that properties <\/span>are<\/span> devalued, especially in areas exposed to job <\/span>loss<\/span> and <\/span>increasing<\/span> insurance premiums.<\/span><\/p>\n\n\n\n

Even landlords are losing out, as rent prices are declining or stagnating in many Sunbelt metro areas, according to <\/span>Redfin data<\/span><\/a>.<\/span><\/p>\n\n\n\n

For example, Austin saw a 3.1% decline in year-over-year asking rent in August, while areas like Phoenix and Orlando have <\/span>barely budged<\/span>.<\/span>  <\/span><\/p>\n\n\n\n

Real Estate Investing Alternatives <\/span><\/h2>\n\n\n\n

All this<\/span> means that as<\/span> a real estate investor, it <\/span>might<\/span> be a smart move to hold off on new acquisitions and see how the market <\/span>picks up<\/span>.<\/span> But keeping your capital in cash might not be the best strategy either, as it means missing out on yield.<\/span><\/p>\n\n\n\n

And with inflation rising, even keeping your money in a savings account won\u2019t give you much. Even high-yield savings accounts won\u2019t give you a return over 5%.  <\/span><\/p>\n\n\n\n

A better real estate alternative? Consider investing in short-duration, real estate-backed notes that deliver mid-single-digit returns while letting markets recover.<\/span><\/p>\n\n\n\n

Real estate-backed notes<\/span><\/h3>\n\n\n\n

Real estate-backed notes are a debt investment secured by real property. As the debt <\/span>is repaid<\/span>, investors receive interest income. <\/span>While it <\/span>might<\/span> seem like a complex model for institutional investors, real estate firms like <\/span>Connect Invest<\/span><\/a> make passive <\/span>investing in<\/span> real estate easy.<\/span><\/p>\n\n\n\n

With Connect Invest, you could earn 9% in passive income by investing in real estate debt securities that <\/span>are used<\/span> to fund a diversified portfolio of private and <\/span>commercial real estate<\/span><\/a>. <\/span>For investors, this means having exposure to real estate without <\/span>overhead<\/span>, liquidity, or account fees<\/span>, <\/span>with short commitment terms.<\/span><\/p>\n\n\n\n

See how <\/span>Connect Invest\u2019s notes<\/span><\/a> can keep your capital working through the down cycle and positioned to reenter when vacancy pressure eases.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

This article is presented by Connect Invest. The Sunbelt area is facing a housing slowdown. Metro regions in Austin, Phoenix, and Tampa saw a multifamily construction boom in 2023 and […]<\/p>\n","protected":false},"author":613681,"featured_media":171136,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-184915","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-trends"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/184915","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613681"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=184915"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/184915\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/171136"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=184915"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=184915"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=184915"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}