• Sam Altman, OpenAI CEO, stated yesterday the AI sector is overinflated, warning that billions plowed into the arms race risk a bubble akin to the dot-com crash. • • This brings back memories from 1999/2000 when I was investing in internet stocks and basically lost 90% of my capital (if you think only a totally green rookie could have lost that much, I would agree with you). Question for those who have been in real estate back then, what was the bursting of the dot.com bubble like in the rental property world?

if the big short is to be believed the prices and rents in the bay area apparently went up during the .com bubble. I don't think RE is immune to bubbles though, especially in specific assets, my guess would be storage and car washes are gonna be popping if they haven't already, I'm not in those so I cant say for sure, but I am out there shopping and hunting for retail dev land and some of the prices we are competing against for these uses are insane for a land basis, and while its a different business model than what we are into I'll be curious to see how they both fair long term.

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Updated 1 day ago on 08/19/2025. Most recent reply

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Marcus AuerbachPoster

#2 General Real Estate Investing Contributor

Investor and Real Estate Agent
Milwaukee - Mequon, WI

Market Trends & Data

AI-bubble? What will happen to real estate when it bursts?

Marcus AuerbachPoster

#2 General Real Estate Investing Contributor

Investor and Real Estate Agent
Milwaukee - Mequon, WI

Posted August 19, 2025 05:50

Sam Altman, OpenAI CEO, stated yesterday the AI sector is overinflated, warning that billions plowed into the arms race risk a bubble akin to the dot-com crash.
This brings back memories from 1999/2000 when I was investing in internet stocks and basically lost 90% of my capital (if you think only a totally green rookie could have lost that much, I would agree with you). Question for those who have been in real estate back then, what was the bursting of the dot.com bubble like in the rental property world?