Creating Cornerstone Content That Converts Leads Into Clients For Real Estate

Cornerstone content is the in-depth, go-to article or series that builds trust and turns real estate leads into clients, where text ads only generate the leads. You build it in seven steps: choose the right topic, optimize for keywords, keep formatting consistent, link internally, add a call to action, promote it and maintain it.

Real estate investors often get stuck in a rut of creating text ads, which, while effective at generating leads, rarely convert them into partners.

You should consider cornerstone content to build your brand and turn leads into partners.

Write cornerstone articles to make the potential customers’ decision-making easier. The cornerstone content should be the go-to resource for information about your industry and business that people can hold onto for reference and use as they look for more information about your services.

For instance, the return on investment (ROI) on commercial real estate is reportedly 9.5% per annum. Use cornerstone content to show how much experience you have in helping people purchase or sell such property at an even higher markup. So, here’s how you can use cornerstone content to convert leads into clients.

What Is Cornerstone Content?

Cornerstone content is a post that provides in-depth and valuable information for your clients. It could be a series of your best articles that you intend to rank highest on search engines.

Since they provide exhaustive content that includes comprehensive information rather than sell products, they tend to be longer and more complex. It could be a simple blog addition or a stand-alone page.

Cornerstone content is vital because it’s ideal for building trust and credibility since the foundational content helps build traffic and brand awareness by establishing you as an authority in the industry. That is crucial to showing potential customers what you can do, making them interested in your services.

The goal of the cornerstone content is to create a positive first impression, making them more likely to convert into paying customers. For best results, create cornerstone content once or twice every month, depending on how often you publish new content on your site.

How do you create cornerstone content that converts?

Here are sure-fire tips for creating cornerstone content that will help your real estate agency grow:

1. Choose The Right Topic

It may seem mundane, but this is perhaps the most crucial step of the cornerstone content.

Before settling on the topic, you have to ask yourself a series of questions, chief among them the major pain points or problems the target audience faces. Next, find out what hasn’t been answered sufficiently on other websites, then determine which issues you can answer competently.

It helps to ask members of your team if there are common questions they face. In addition, ask real customers too. That should allow you to formulate cornerstone content containing unique insight that addresses burning issues.

2. Keywords And SEO Optimization Strategies

It’s not just the real estate industry; the first page of Google is where all the action is. As 95% of web visitors rely on the first-page result, ensuring your website makes the cut and appears on the first page is essential.

One of the best ways to do that is through keyword optimization. It involves using words and phrases relevant to what you’re selling and what clients are searching for and answering the potential customers’ most pressing needs.

For example, if you’re selling a house in San Francisco, you might want to put “San Francisco” and “Bay Area” in your title tag and meta description. You might also include those phrases in the body text of your page so that search engines will pick up on them.

Another strategy is ensuring your site is easily crawlable by search engines using proper coding standards and following web design best practices.

3. Be Consistent With Formatting And Style

Your clients will recognize your brand more efficiently if your content follows a similar pattern and uses familiar language and branding. Engaging, high-quality, consistent content impacts a potential customer’s decision-making more than any other technique.

4. Internal Linking

Send the most internal links to your cornerstone posts as this signals to search engines that they are the most important, allowing them to rank higher. It helps to use text links, that is, the keywords as the anchor text for links and then link within the text itself. Ensure you’re linking from pages with related content.

5. Call To Action

Considering you’re creating the cornerstone content aiming to convert them into clients, it helps to insert a call to action (CTA) at the end of the article. A CTA instructs the reader to take a course of action. You can do this by using call-to-action buttons at the end of your post.

CTAs are highly effective, but the best performing is personalized, which HubSpot found to be 202% more effective than their basic equivalents. For instance, ContentVerve turned the phrasing in their CTA into the first-person point of view. Instead of writing “start Your 30-day…,” they wrote “Start My 30-day…” and realized a 90% rise in the click-through rate (CTR). So, how do you ensure your call to action is clear and compelling?

  • Tell Your Readers Exactly What You Want Them To Do Next: Make it clear what they need to do next. Use action-oriented writing instructing them to take action, such as clicking a link to another page on your site or even asking them to leave a comment with their thoughts. The key is to be specific, so there’s no room for confusion.
  • Ensure The CTA Is Visible And Eye-Catching: If your readers can’t see the button clearly, it won’t matter how good your copy is—they won’t click on it. Make sure that whatever design element you use for your CTA is highly visible, accessible, and super apparent where to find it. The goal of any call-to-action is getting people excited about taking action—and for that excitement to translate into clicks.

6. Promote The Content

You can create the best cornerstone content, but it will be pointless if your target audience doesn’t read it. Since it takes time for new content to rank organically, make a splash by promoting the content in the meantime.

Email promotion is one of the most impressive ways of doing it, with 4 billion daily users. It’s telling that 59% of respondents said email marketing influenced their purchasing decision.

Social media is another potent outlet considering 72% of Americans use social media daily. Focus on platforms that work best for real estate, personalize text and images for each platform, and share more than once.

7. Maintenance

Finally, you must maintain the cornerstone content’s health to remain evergreen. Monitor the performance, update information regularly, improve loading speeds, and give it a style refresh every few years to keep it looking up-to-date.

Final Word

If you’re a real estate investor, cornerstone content might provide the tipping point of turning leads into clients. You can do that effectively by researching suitable topics, conducting keyword research, and creating content with plenty of internal links and a personalized call to action.

Ensure you maintain consistent messaging and branding across the cornerstone content, promote the posts, and keep updating the content to keep them evergreen.

Frequently asked questions

What is cornerstone content used for?

Building trust. Cornerstone content is the go-to resource on your site, the in-depth piece that shows prospects what you know and what you can do for them. It builds traffic and brand awareness, establishes you as an authority in real estate, and makes a strong first impression, which is what turns a lead generated by a text ad into a paying client.

How long should cornerstone content be?

Long enough to be exhaustive. A cornerstone piece covers its topic comprehensively instead of selling a product, so it runs longer and goes deeper than an ordinary post. It can be one in-depth blog post, a series of your best articles or a stand-alone page, as long as it answers the question better than anything else your prospects will find.

How often should you publish cornerstone content?

Once or twice a month, depending on how often you publish on your site overall. Each new cornerstone should target a real pain point your audience has, answer a question other websites have not answered well, and earn the most internal links on your site so search engines treat it as your most important page.

How do you keep cornerstone content up to date?

Treat it as a living page. Monitor how it performs, update the information regularly, improve its loading speed, and give it a style refresh every few years so it keeps looking current. Keep promoting it through email and social media while it climbs in search results, and share it more than once on each platform.

A first-time homebuyer succeeds in a high-price, high-rate market by doing seven things: research markets where asking prices were cut, build credit, make a sizable down payment, get pre-approved, apply for first-time buyer grants and programs, use a mortgage broker and an agent, and weigh a variable-rate mortgage.

Mid-2022 is probably the worst time to buy a home. Median home prices hit an all-time high of $440,000 in July, and mortgage rates are at 5.5%, almost double what they were last year. While buying a home now may seem a terrible idea, there are ways to bag yourself a good deal. So, these are some tactics you can employ to ensure your purchase doesn’t become a financial nightmare. 1. Do Your Research Before looking for a home, you must understand the market to know what’s within your budget. Sure, most home prices have skyrocketed over the past few months, but there are some places where it’s coming down. For instance, according to Redfin, Salt Lake City, Boise, and Denver all witnessed at least 50% cuts in asking prices. Seven more cities, including Tampa and Sacramento, saw asking prices slashed by more than 44%. So yes, you can still bag yourself a deal in the current environment, as long as you are willing to do the legwork and compromise on the places you wish to live in. 2. Build Your Credit History It helps to build your credit history if you’re a first-time homebuyer. A poor credit score makes qualifying for a mortgage loan challenging or attracts high premium rates because financial institutions will view you as a risk. If you have little or no credit history, you may need to take steps to build up your score. Here are some tips for doing so: Pay all your bills in full and on time: Even if you don’t have any credit cards or loans yet, you should make sure that any bills you pay regularly (such as rent or utilities) are paid on time and in full. It will help establish your payment history and show lenders that you’re reliable with money. Don’t open too many credit cards at once: If you decide to apply for a credit card, make sure that you only use one at a time so that it doesn’t hurt your credit score too much if the application gets denied (or approved but with a low limit). Minimize utilization rate: Your balance-to-limit ratio (utilization rate) is just as important as payment history. It refers to the total balances racked up on all your credit cards divided by the total credit limit of all the credit cards. Aim to keep this figure below 30%. 3. Make A Sizable Down Payment Making a sizable down payment toward buying your home is vital. The down payment is typically between 3% and 20% of the home’s purchase price. You want to make a large down payment because it will lower your monthly mortgage payments, saving money in the long run. Additionally, making a large down payment means avoiding paying private mortgage insurance (PMI). PMI is an additional fee that many lenders require as part of their mortgage loan package. It protects them if you default on your loan—but it can add hundreds or even thousands of dollars to your monthly mortgage payment. You can avoid PMI by paying more than 20% of the home’s purchase price as a down payment. Alternatively, you can avoid a down payment by getting a piggyback or 80-10-10 loan, which covers 10% of the deposit while you deposit the other 10% from your savings. 4. Get Pre-Approved For A Mortgage When you’re a first-time homebuyer, getting pre-approved for a mortgage is one of the most important steps to ensure you find the right home. Getting pre-approved means that a lender has reviewed your finances and determined that you can afford a home at a certain price range. Your agent will know how much house you can afford, so they don’t waste time showing you homes that are beyond your means. 5. Try Out For First-Time Home Buyer Grants And Programs First-time homebuyers have several financial assistance programs that will soften the sting of the hefty payments needed to purchase a home. A first-time homebuyer’s grant refers to financial assistance you may receive to purchase your first home. It typically covers a percentage of the down payment and closing costs. Since it’s a grant, you may not have to repay the amount. Examples include: Downpayment Toward Equity Act Good Neighbor Next Door program Bank of America’s Home Grant Chase Bank Homebuyer Grant On the other hand, first-time home buyer programs usually come from federal, local, or state governments and take the form of tax credits, forgivable mortgages and closing costs, and down payment assistance. You may qualify for the Housing Choice Voucher if you face financial challenges due to a low income and receive minimum earnings as stipulated by your local public housing authority. A clever way to use the voucher is to fund a rent-to-own program. Similarly, you can apply for an FHA loan. These are Federal Housing Administration-insured loans made by private lenders, usually featuring zero-interest loans and deferred payment loans. Moreover, they typically have lower down payments and require lower credit scores than most other mortgage loans. 6. Use A Mortgage Broker And Agent It pays to consult a mortgage broker in such a tight financial environment. They know the ins and outs of the mortgage industry, so they can find you a mortgage with lower fees, great rates, and financial perks and help you overcome borrowing challenges. Similarly, procure the services of a real estate agent. Using an agent is one of the best ways to ensure a smooth process and a successful outcome. No wonder 87% of homebuyers used an agent in their home purchase. Real estate agents or brokers know the market and can help you find your dream home at your price range. Ensure that the agent knows your unique needs so they can find the ideal property that fits your lifestyle. 7. Consider Variable-Rate Mortgage A variable-rate mortgage can be a good choice at this point. You don’t want to go for a fixed-rate mortgage with fixed interest rate monthly payments throughout its lifespan, as the current mortgage rates are very high. An adjustable-rate mortgage will have fluctuating mortgage rate payments, so you will pay lower fees when the interest rate is eventually lower. Further, an adjustable rate payment allows you to make higher monthly mortgage payments without penalty. That means there’s a chance you might pay much less than a fixed rate arrangement. Additionally, variable-rate mortgages typically have lower initial interest rates than fixed-rate mortgages, which means they’re cheaper upfront. That could buy you some time until the interest rates finally dip. Finally, you could refinance the variable-rate mortgage and exchange it with a fixed-rate mortgage when the interest rates eventually drop to reasonable levels and it makes financial sense to do so. Final Word Many potential first-time home buyers are postponing the purchase because of the hostile economic environment that has rendered homebuying virtually impossible. Home prices have reached historical highs, and mortgage rates are double what they used to be in January 2022, with more hikes in the pipeline as the Fed is threatening more interest rate hikes. If you must buy a home, try looking for one in cities that have lowered their asking prices, utilize a mortgage broker and real estate agent to find deals for houses and mortgage rates, and build your credit history to score favorable loan terms. Similarly, consider a variable-rate mortgage, make a sizable mortgage down payment to reduce your monthly mortgage payments, and try to secure a first-time home buyer grant or similar program.

Frequently asked questions

What is the best advice for first-time home buyers?

Do the legwork before you shop. Study the market to learn what fits your budget, and look where asking prices are falling; Salt Lake City, Boise and Denver all saw cuts of at least 50%. Build your credit so lenders see you as a low risk, save a sizable down payment, and get pre-approved so your agent only shows you homes you can afford.

What mistakes do first-time home buyers make?

Common mistakes are shopping with a poor credit score, which makes a mortgage hard to get or more expensive; opening too many credit cards at once; and running card balances above 30% of their limits. A small down payment raises the monthly payment and can add private mortgage insurance, which can cost hundreds or even thousands of dollars a month. Skipping pre-approval wastes time on homes beyond your means.

What first-time home buyer grants and programs are there?

A first-time homebuyer grant typically covers a percentage of the down payment and closing costs, and you may not have to repay it. Examples include the Downpayment Toward Equity Act, the Good Neighbor Next Door program, Bank of America’s Home Grant and the Chase Bank Homebuyer Grant. Government programs offer tax credits, forgivable mortgages and closing costs, down payment assistance, the Housing Choice Voucher and FHA loans.

Real estate investors thrive in a recession by doing nine things: keep branding and marketing, learn where the money is moving, invest in technology such as a CRM, retain current clients, grow their network, cut expenses, stick to the business plan, re-evaluate the business and create a unique value proposition.

There is a concern among many investors in real estate about the possibility of a recession in light of recent economic uncertainties and how that will affect the real estate market.

In most economic downturns, people lose jobs, and mortgage rates typically go higher than most can afford, crippling their ability to purchase properties. But that doesn’t always spell doom for real estate, so here’s a look at how a real estate investor can survive, or even thrive, during a recession.

1. Should You Keep Marketing During a Recession?

The best way to survive a recession is to keep marketing your brand. It’s about building a brand that stands out from the crowd.

Branding isn’t just about getting customers to recognize your business; it’s about getting customers to keep coming back for more business as you have established yourself as a reputable brand. One of the best ways to achieve this is through positive marketing.

While most businesses would understandably cut down on marketing during an economic downturn, that’s the perfect time to ramp up your marketing efforts, as it has healthy returns. For instance, the return on investment (ROI) for email marketing is $36 for every $1 spent. Here’s what you stand to benefit from good marketing and branding:

  • Gaining a larger audience
  • Increased cash flow
  • Help you take some of your competitors’ clients

2. Which Real Estate Sectors Do Better in a Recession?

You need to have a working knowledge of the economy and how it will impact the real estate industry to stand a chance of surviving a recession. Get to know the causes of the recession and where the money is headed.

In a recession, not all economic sectors will slump; some might perform better than others. Use this knowledge to pivot your business to cater to those sectors that are doing better during the downturn.

Take the 2020 recession, for instance: while shopping in malls dipped by 70% and the office industry slumped due to work-from-home initiatives, the booming ecommerce industry led to a steep increase in demand for warehouses.

3. Invest In Technology

Investing in a customer relationship management (CRM) tool during a recession is one of the smartest moves you could make, as it has an average ROI of $8.71 for every dollar spent.

As a real estate brand, you can use CRM to track client information and make follow-ups. A sound CRM system should have features that enable you to access information about potential buyers and sellers easily and communicate with them using various channels.

Similarly, you can use social media sites and real estate apps to showcase your listings and increase your reach.

Consider technologies such as virtual tours and virtual staging to cut down on costs of staging an open day and staging a listing.

4. Work On Customer Retention Of Your Current Clientele

Keeping your already existing clients should be a major priority. When you work hard to maintain good relationships with your clients, they’ll appreciate it and return the favor. Making them feel special goes a long way toward building trust. Try some of these customer service strategies:

  • Maintain a customer feedback loop
  • Provide personalized customer service
  • Start a customer education program
  • Give offers and discounts
  • Provide incentives

5. Grow Your Network

Never underrate the power of networking, as it can help your business stay afloat during recessions. You can build relationships with friends and associates to expand your business’s reach and abilities.

A more extensive network will help in acquiring new business leads, which you can work toward closing to improve sales. Additionally, it will help you keep abreast of the latest trends in the market and identify best practices.

Further, networking will increase your connections and opportunities to explore new markets.

6. How Do You Cut Expenses in a Recession?

Tough times call for tough measures. Everyone has to make sacrifices to ensure the firm makes it through an economic downturn, which means cutting costs. Reducing expenses is a brilliant idea even in good times.

Lower your expenditure by eliminating items that don’t offer much to the business, such as a cable subscription in the office. Alternatively, realign your financial spending by reviewing your insurance providers to get a better deal, consolidating bank accounts, and avoiding unnecessary debt.

Improving efficiency will also help in cutting down costs as it minimizes wastage. Purchase the right tools, go paperless, and improve time and project management.

7. Stick To Your Business Plan

Economic recession is part and parcel of every business cycle. You don’t need to panic and sell everything. Just stick to your original business plan with just a few adjustments. To stay focused on the big picture, make it a point to refer to your long-term objectives and plans regularly.

Moreover, set short-term weekly and monthly goals, and tweak where necessary as long as they tally with the master plan. You may need to restructure the business plan as recessions can be unpredictable.

8. Re-Evaluate The Business

A recession is the perfect time to take a step back and take a long hard look at the business. Since there’s plenty of time on your hands, use the time to evaluate the company and find any weak points that need fixing.

Maybe business is low because you’re not marketing right, your pricing doesn’t make sense, or you don’t understand prospects. Go over your data, try to work out where problems are, and implement potential solutions.

9. Create A Unique Value Proposition

Creating a unique value proposition is one of the best ways to thrive in any market. In real estate, this means differentiating yourself from the competition. That means providing something the others don’t offer.

That could mean anything that offers extras to clients, like diversifying your business by partnering with a mortgage broker, so you offer mortgage provision services in-house.

Final Word

One of the key lessons to surviving a recession is never to stop marketing. That will help build your brand as well as bring in new business. Alternatively, create a unique value proposition, invest in technology, and grow your network to improve sales.

On the other hand, save money by cutting back on expenditure, sticking to the business plan, and retaining your current clients. It also helps to keep abreast of the current economic environment to find opportunities you had not considered before.

Despite the macroeconomic headwinds of recession, your individual economic success could be amazing, as long as you can navigate and anticipate this crisis.  What outwardly appears to be chaos may be a historic opportunity.

Frequently asked questions

What would a recession do to real estate?

In most downturns people lose jobs and mortgage rates climb higher than many buyers can afford, which cripples their ability to purchase property. That does not always spell doom, because not every sector slumps. In the 2020 recession, mall shopping dipped by 70% and offices slumped with work from home, while booming ecommerce drove a steep increase in demand for warehouses.

How do you survive a real estate recession?

Never stop marketing; it builds your brand and brings in new business while competitors pull back. Create a unique value proposition, invest in technology such as a CRM, and grow your network to improve sales. At the same time, save money by cutting expenses, sticking to your business plan and keeping your current clients, and watch the economy for opportunities you had not considered.

Does recession-proof real estate investing exist?

A recession is part of every business cycle, so the goal is not to avoid it but to be ready for it. You do not need to panic and sell everything. Know where the money is moving, since some sectors perform better than others, pivot toward them, and adjust your plan as needed. What outwardly appears to be chaos may be a historic opportunity.

Unemployment is one of the signals the National Bureau of Economic Research weighs before calling a recession, and every recession from 1960 to 2020 ran unemployment above 6.1%. With U3 unemployment at 3.6% and more than 10.7 million job openings in mid-2022, the labor market argued against a recession call.

In the face of higher interest rates and rampant inflation, the jobs market is somehow still going strong. For instance, the economy added an estimated 390,000 jobs in May 2022 and 528,000 in July.

Many businesses have “hiring” signs up, proving that although the current global economic crisis is slowing down the U.S. economy, we are not quite in a recession yet. So, here’s a look at how a recession affects unemployment rates.

What are the six measures of unemployment?

To better understand the job market and unemployment rates, it’s essential to know the different categories of ‘unemployed.’ To calculate the unemployment rate, the U.S. Bureau of Labor Statistics (BLS) uses six measurements ranging from U1 to U6.

  • U1 refers to the percentage of people who’ve been unemployed for more than 15 weeks.
  • U2 is the percentage of people who have lost their jobs or finished temporary work.
  • U3 is the official unemployment rate for people without jobs who actively sought work within the past four weeks.
  • U4 encompasses U3 individuals plus those who are discouraged. They stopped looking for work because they believed that current economic conditions were unfavorable.
  • U5 includes individuals described in U4 in addition to marginally attached workers. It also includes individuals who would like to work but haven’t looked for work recently.
  • U6 includes people described in U5 plus part-time workers who want to work full-time but economic conditions do not allow it.

The different measures of unemployment can be better understood using the table below.

The six measures of unemployment, each one broader than the last.
Measure Who it counts
U1 People who have been unemployed for more than 15 weeks
U2 People who lost their jobs or finished temporary work
U3 The official rate. People without jobs who actively sought work within the past four weeks
U4 Everyone in U3, plus discouraged workers who stopped looking because they believed economic conditions were unfavorable
U5 Everyone in U4, plus marginally attached workers who would like to work but have not looked recently
U6 Everyone in U5, plus part-time workers who want full-time work but cannot get it under current conditions

U3 is the most commonly reported of the six measurements, with U6 being a better depiction of the current unemployment rate. Despite the BLS focusing on U3 as the official unemployment rate, many economists feel U6 is more meaningful because it factors in a more significant percentage of unemployed people.

The current rate for U3 is 3.6%. However, this only takes into account unemployed people actively looking for work. So, if unemployed people stop looking for a job, they no longer form a part of the U3.

This “discouraged” person decreases the unemployment rate since they no longer count as unemployed. What this leads to is a false rate of unemployment.

The U6 unemployment rate as of June 2022 stands at 6.7%. One of the best indicators of the employment market is the temporary help penetration rate. June saw an increase in the temp help employment rate to 2.07% of the total labor market, and the trend is likely to continue.

Another issue affecting employment is the number of workers re-entering the job market as there is increased selectivity in looking for new opportunities.

Typically, one of the indicators of a looming recession is high unemployment. Indeed, apart from scrutinizing factors such as income, manufacturing activity, output, and business sales, the National Bureau of Economic Research (NBER) also factors in the employment levels.

While the GDP has contracted two consecutive quarters, a traditional indicator of a recession, the strong employment market is a real head-scratcher. Staffing companies report finding it difficult to fill the number of open jobs available.

But the NBER is on to something because the common denominator in all recessions seems to be jobs. Take 1960, for example. Household incomes rose if you adjusted them for inflation, but that was a recession. In 2001, the GDP didn’t contract for two consecutive quarters, yet the NBER called it a recession.

Through all the recessions, be it the 1960 or 2020 recession, the unemployment rate always stood higher than 6.1%. With the current figure of 3.6%, it’s perhaps easy to see why the NBER is slow to call this a recession.

Besides, payrolls keep expanding, hitting 1.6% between December 2021 and May 2022. Labor is scarce, with the BLS reporting more than 10.7 million job openings as of June 2022. Those are hardly the signs of recession.

Or maybe the job market is slow to react to the downturn. After all, sales and manufacturing have weakened. Whatever the case, recession or not, it’s a long shot to expect unemployment to rise to the ‘normal’ levels witnessed during a typical recession.

With that, some experts expect a shallow recession, and the jobs market will help cushion against severe dips. That employment growth should also assist in productivity. Most corporations also raked in exceptional profits, which should cushion them further.

President Biden lamented that oil and gas companies made profits at the expense of consumers. He famously quipped that “Exxon made more money than God” after the company posted a first-quarter profit of more than $5.48 billion.

Why was the job market strong despite recession fears?

Despite fears of a looming recession, the current job market favors job seekers. Job openings are high, while layoffs are extremely low. Daniel Zhao, a senior economist at Glassdoor, agrees that this doesn’t look like a job market headed into a recession, as labor demand is still red-hot.

The uptick in hiring works out for the Federal Reserve’s plan to slow the rising inflation rate. In May, the Federal Reserve increased interest rates by 50 basis points, a move meant to slow down consumer demand without tipping the economy into a recession.

Despite higher interest rates and inflation, the labor market continued going strong in May. A LinkedIn survey showed that hiring went up by 9.8% in May 2022, a figure 10% higher than pre-COVID. Industries with the most significant increase in hiring include accommodation, healthcare, and construction.

Final Word – Recession Threats Have Little Impact On Employment

Despite fears of a recession, the job market is not showing any signs of slowing down. This will continue to positively impact the unemployment rate as job openings remain high and employees continue to select the jobs they want.

A critical element that is often overlooked is not just simply the overall employment rate, the quantity of jobs; but the income associated with the job, the quality of the job. Despite returning overall employment to pre-pandemic levels, global wage growth has not kept pace with real inflation, and actual productivity has fallen off of a cliff.

At a macro level, I suspect we are in deep trouble.

Frequently asked questions

Does unemployment go up during a recession?

Historically, yes. Through every recession from 1960 to 2020, the unemployment rate stood above 6.1%. In mid-2022, U3 unemployment was 3.6% and there were more than 10.7 million job openings, which is why the National Bureau of Economic Research was slow to call a recession even after two quarters of shrinking GDP.

What is the difference between U3 and U6 unemployment?

U3 is the official rate: people without jobs who looked for work in the past four weeks. U6 is the broadest measure. It adds discouraged workers, people who want work but have not looked recently, and part-time workers who want full-time jobs. In June 2022, U6 stood at 6.7% while U3 was 3.6%.

Who decides when the United States is in a recession?

The National Bureau of Economic Research makes the call. It looks at income, manufacturing activity, output, business sales and employment, not just GDP. Two quarters of shrinking GDP is the traditional signal, but the NBER called 2001 a recession without it, and it called 1960 a recession even though inflation-adjusted household incomes rose.

Why can the official unemployment rate look lower than it really is?

U3 counts only people actively looking for work. When unemployed people get discouraged and stop looking, they drop out of U3, so the rate falls even though they still have no job. That is why many economists see U6, which counts discouraged and underemployed workers, as the more meaningful picture.

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Successful companies handle a crisis by planning before it hits: they anticipate worst-case scenarios, build a crisis team with a media-trained spokesperson, know which stakeholders to tell first, keep holding statements ready and review the response afterward. Johnson & Johnson’s swift, transparent Tylenol response in 1982 remains the textbook example.

Handling Crises 危機 (“Kiki”)

危機 (“Kiki”) is the Japanese word for crisis. It is composed of two characters: (危) means “dangerous” and (機) means “opportunity.” Combined, a crisis is both an opportunity and a threat.   No matter your company’s age, size, or legacy, it is vulnerable to a crisis. Recently, some of the world’s most prominent brands have come under fire from the media. Like when Uber lost 200,000 customers after the hashtag #DeleteUber trended when they operated during the Trump strike. Or when United Airlines lost $800 million in value in a matter of hours. A 2021 PwC study showed that 35% of respondents had a crisis plan in place when the COVID-19 pandemic hit, and only 20% felt the pandemic positively impacted their organizations. Seeing the consequences Uber and United Airlines faced, companies must have a crisis management strategy.

Why do real estate companies need a crisis plan?

The pandemic brought unprecedented challenges to businesses, not just the real estate market. Statistics showed that nearly 100,000 businesses closed shop permanently. That forced many companies to reevaluate their crisis management strategies. Many developers experienced stoppages and delays in their real estate projects, requiring companies to think outside the box to create safe and smart solutions. Many companies tend to be reactive instead of proactive regarding crisis management, but lacking a crisis strategy may lead to the following issues: ● No designated spokesperson to coordinate communications can lead to a communications breakdown. ● A lack of clear messaging to stakeholders to address the situation can make them confused, scared, and angry, which is bad for business. ● Outsiders looking in will place your company on the list of companies facing a PR disaster in that year. ● Solving the crisis will take far longer, so you may hit some snags. ● If you do not take control of the situation, the company will face negative financial ramifications.

What are real examples of crisis management?

1. Cracker Barrel

In 2017, Bradley Reid posted on the restaurant’s corporate page, asking why they fired his wife, Nanette, after she had worked at the restaurant for 11 years. Soon enough, the hashtag #JusticeforBradsWife began trending online. Shortly afterward, someone started an online petition at Change.org, seeking answers. 17,000 people signed it. The response the restaurant gave to the crisis was silence. They ignored the hashtags, petitions, and firestorm surrounding the situation. Cracker Barrel came through the crisis without so much as a tumble in its net worth. The key takeaway from this is that sometimes silence works best. It is a risky choice, but like Cracker Barrel, it may turn out well. A new video trends every other day, and people are quick to forget and move on. This strategy may just work out if keyboard warriors find something else to focus on.

2. Johnson & Johnson

In 1982, Johnson & Johnson faced a crisis where 7 people in Chicago died after ingesting over-the-counter Tylenol capsules laced with cyanide. To date, the incident remains unsolved. How the company handled the crisis is a textbook example of crisis management today. Following the deaths, Johnson & Johnson immediately responded by stopping advertising for all its products. The company then sent out 450,000 messages to healthcare facilities and stakeholders, informing them of the crisis. Johnson & Johnson also sent out safety warnings to consumers. Evidence later showed that the substance was accidentally introduced through store shelves and that it was not the company’s fault. However, the company still took full responsibility. This incident led to the company eventually manufacturing tamper-proof packaging. Experts roundly regard the response as one of the best in the history of crisis management. The media praised how J&J handled the situation and how it also helped Tylenol recover as a brand. The key takeaway is that integrity and transparency go a long way toward building consumer and public trust again.

How do you create a crisis management plan?

Having looked at how some companies managed their crises using essential principles, below are a few steps to create a successful crisis management plan.

1. Anticipate Crises

Instead of waiting to scramble a team and a plan together after a crisis, plan ahead for the worst-case scenarios. During brainstorming sessions with the team you put together, quickly determine which situations are preventable. You can include variables in the plan that allow tweaking in response to a real crisis.

2. Who should be on a crisis team?

By default, the crisis team should include the management team, the CEO, and the PR manager. If possible, have web and social media managers on the team. Social media managers are on the frontline and can detect the public’s consensus and mood. They can also gather insight from online mentions, hashtags, or posts that the company can use to steer the crisis on the right track. Next, you want to put the right spokesperson in place—one who is comfortable in front of cameras and people. If possible, the spokesperson you select should have some media training.

3. Know Your Stakeholders

The internal and external stakeholders are the first people you should communicate with. Develop communication channels that will resonate with stakeholders individually.

4. What is a holding statement?

With the proactive planning in place, you should already have pre-planned holding statements ready to release inside the company’s online newsroom. The main aim of a holding statement is not to plead for forgiveness or grovel; the idea is to acknowledge the situation and provide contact information that the public can use.

5. Post-Crisis Review

As insignificant as it may seem, this is a step that major companies focus on that helps evaluate and update the crisis management process. Develop, assess, and discuss strategies to update potential scenarios that may happen. This is a crucial process as you now have data and facts regarding how the company reacted to the crisis, the public’s response, and stakeholders’ reaction to the situation. You can use the information to ensure the company creates an even better crisis response.

In Conclusion

Any company can implement the same strategies big companies use for their crisis management. Combine the swift and transparent response that Johnson & Johnson used with the crisis plan outlined above, to ensure your company stays ahead in any crisis it may face. I personally look forward to times of crises, it dramatically improves my returns and allows me an opportunity to test myself against unknowns. The most important thing that crises bring to the forefront are my inherent weaknesses in my structures, it allows me an opportunity to prune dead wood and recharacterize / recast the future. Look to crises as an opportunity, not a threat.

Frequently asked questions

What does the Japanese word for crisis mean?

The Japanese word for crisis is 危機, or “kiki.” It combines two characters: 危, meaning “dangerous,” and 機, meaning “opportunity.” Put together, a crisis is both a threat and an opportunity. A company that plans ahead can limit the danger and use the moment to find and fix weaknesses in how it operates.

Why is the Tylenol case a model of crisis management?

In 1982, seven people in Chicago died after taking Tylenol capsules laced with cyanide. Johnson & Johnson stopped advertising all its products, sent 450,000 messages to healthcare facilities and stakeholders, and warned consumers. It took full responsibility even though it was not at fault, then introduced tamper-proof packaging. That integrity and transparency rebuilt public trust in the brand.

Is staying silent ever the right response to a crisis?

Sometimes. When #JusticeforBradsWife trended in 2017 and 17,000 people signed a petition, Cracker Barrel said nothing, and its net worth did not tumble. Silence is a risky choice, but a new controversy trends almost every day and people move on quickly. It works only if the public’s attention shifts elsewhere.

Why should a company review a crisis after it ends?

A post-crisis review gives you real data on how the company reacted, how the public responded and how stakeholders took the situation. Use it to update your likely scenarios and strategies so the next response is better. Major companies treat this step as part of the crisis process, not an afterthought.

www.redpillkapital.com If you simply need more information, have questions, or want to discuss a specific deal, I’m always excited to help. Reach out to me at info@redpillkapital.com If you are ready to start your journey to financial freedom but want specific additional educational materials, we have a course designed for physicians.

COVID-19 froze real estate and then reshaped it. Home listings fell 40% in 2020, the median home price climbed to a record $405,000 by March 2022, institutional investors crowded into hard assets, hybrid work emptied offices, and investors turned to building technology and data-driven analysis.

Editor’s note, August 2026. This piece was published in August 2022 and describes the market as it stood then. Where it stands now, from Federal Reserve data: the median U.S. home sale price is $410,700 (Q2 2026), below the $442,600 peak of Q4 2022; the federal funds rate is 3.63%, down from a 5.33% peak in August 2023; the 30-year fixed mortgage averages 6.66%, down from 7.79% in October 2023; and consumer prices are rising 3.3% year over year. Sources: FRED series MSPUS, FEDFUNDS, MORTGAGE30US and CPIAUCSL.

Failure to contain COVID-19 led to a global pandemic in 2020. To curb the spread of the disease, governments worldwide imposed lockdowns and stay-at-home orders. In the following months, vacant office buildings, dead silent bars and restaurants, and empty shopping malls became symbolic of the limited interactions and social distancing. Consequently, that led to a global economic crisis, with real estate one of the worst-hit industries. In 2020, home listings dropped by 40%, while places like New York witnessed a 58% drop in pending home sales. In 2021 however, housing prices rose, reaching 19.3% in July. That kept rising until the median home prices hit an all-time high of $405,000 in March 2022. So, here’s a look at how the COVID-19 pandemic shaped the real estate industry. Home Prices Were Still Climbing Projections at the time expected US home prices to climb by up to 16% over the following year. They did not: the median sale price peaked at $442,600 in Q4 2022 and has drifted down since, to $410,700 in Q2 2026. Homes are nearing half a million dollars, and buyers are pulling out of the market. By the end of June 2022, mortgage applications dropped to the lowest level in 22 years. The housing market change depends on the economy and consumer habits. There are currently signs of a weakening economy, as the country’s GDP has declined for the past two quarters. Economists suggest that the lower GDP is a sign of a looming recession. The Mortgage Bankers Association (MBA) suggests a 50% chance of the U.S. economy tipping into a recession within the next 12 months. On the flip side, consumer spending and the job market are still strong, muddying the projections of an incoming recession. All these factors contribute to higher home prices. Higher Investor Interest Real estate is one of the biggest targets for investors in private wealth, private equity, and institutional investors. Investors are looking to add hard assets to their post-pandemic portfolio. According to Preqin, fewer than 500 institutional investors account for 84% of all real estate investments. That presents a problem because they can withstand the shocks of a downturn in the economy and keep prices stable, even in their currently inflated state. There is a lot of competition in prime assets in segments like multifamily, commercial real estate, data centers, and logistics. The low supply of new buildings in specific markets due to the pandemic’s impact on construction exacerbates the situation. However, interest in the real estate market has diminished thanks to measures to curb rising inflation. The Federal Reserve announced an increase in its key interest rates by 0.75% in July 2022, affecting investors’ ability to get a loan. Navigating Increasing Uncertainty Real Estate Private Equity (REPE) funds and Private Equity (P.E.) firms are in a better position to invest in real estate assets. These firms purchase and develop properties and later sell them for profit. This comes in handy post-Covid-19, where many real estate assets need repurposing and redevelopment. Given that there was no extensive prior data regarding the impact of a global pandemic on real estate, it is challenging to determine core business aspects of investment targets. Data-driven investment analysis is necessary for optimal business during uncertain times. Investors must also have access to informed guidance and marketplace insight. Because Covid-19’s effects varied across countries and regions, having insights into local markets is increasingly important. For example, areas like updating tenant risk profiles and recalculating future rental cash flows are on the to-do lists of investors and construction companies. Investors will include risk mitigation strategies as a part of their deals when expanding their real estate portfolio. Growth In Flexible, Hybrid Workspaces Stay-at-home mandates forced many companies to allow employees to work from home instead of the office, leading to empty office spaces. This did not mean farewell to office spaces, as post-pandemic workers slowly trickled back into the office. The future of work looks like a combination of working from home and in-office, that is, a hybrid workspace. A study carried out by Building Owners and Managers Association International (BOMA) found that 37% of office tenants expect to rent less office space in the future. Real estate companies and investors are looking to repurpose existing office space and improve building layouts to accommodate collaboration spaces. The risk that investors and real estate companies face is the possibility of asset obsolescence. If real estate needs continue to change, the concern is whether certain assets may lose value. That leads to increased flexibility in newer constructions to counter concerns of obsolete spaces. Real estate companies must ensure that spaces are adaptable, allowing for change whenever the need arises. Increased Interest In Technology There is increased investor interest in the technology used in real estate, construction, building interactions, and property management. For instance, there’s an increased demand for buildings with intelligent air quality monitoring and touchless technology. Such buildings fetch premium rates from both tenants and investors. Data analytics is impacting the maintenance and monitoring of buildings. Improved construction software systems are simplifying and streamlining building processes like: ● Inventory management ● Project and contract management and documentation ● Budget control ● Regulatory compliance ● Performance data tracking For investors, keeping track of emerging possibilities spearheaded by technological advancements, and looking at which companies are making use of them, makes it easy to decide which investments to target and pursue. ESG And Sustainability Environmental, social, and governance (ESG) and sustainability are increasing attractiveness and earning potential for buildings and real estate in the blueprints stage. Investors and tenants alike value climate adaptation, energy efficiency, and construction carbon emissions. The pandemic further pushed the importance of ESG and sustainability that can help create market traction during uncertain times. Real estate construction is shifting toward net-zero emissions, which helps contribute to a building’s attractiveness. For example, if a building can be self-sufficient by processing its wastewater or generating its power, it can significantly increase its earning potential. These are a few examples of how construction is turning to ESG and will continue to do so in the future. In Closing – What To Expect The real estate market is changing, with upcoming trends like hybrid workspaces and touchless technology forming core aspects. Investors looking to boost their portfolio will do well to focus on multifamily housing and flexible alternative spacing.

Frequently asked questions

What did COVID do to the housing market?

It froze the market first. In 2020 home listings dropped by 40%, and New York saw a 58% drop in pending home sales. Then prices surged: in 2021 housing prices rose, reaching 19.3% in July, and the median home price hit an all-time high of $405,000 in March 2022. By the end of June 2022, mortgage applications had dropped to the lowest level in 22 years.

How much did house prices go up after COVID?

Housing prices rose 19.3% by July 2021 and kept climbing until the median home price hit a record $405,000 in March 2022. Projections at the time expected up to 16% more growth over the following year. That did not happen: the median sale price peaked at $442,600 in Q4 2022 and has drifted down since, to $410,700 in Q2 2026, according to Federal Reserve data.

Why did housing prices increase during COVID?

Investors in private wealth, private equity and institutions crowded into hard assets for their post-pandemic portfolios, and fewer than 500 institutional investors account for 84% of all real estate investments. That created heavy competition for prime assets such as multifamily, commercial real estate, data centers and logistics, while the pandemic’s impact on construction left a low supply of new buildings in specific markets.

Is the housing crisis getting better?

By Federal Reserve data, prices and rates have come off their peaks. The median U.S. home sale price is $410,700 (Q2 2026), below the $442,600 peak of Q4 2022. The federal funds rate is 3.63%, down from a 5.33% peak in August 2023, and the 30-year fixed mortgage averages 6.66%, down from 7.79% in October 2023. Consumer prices are rising 3.3% year over year.

Use a real estate CRM to track every client in one place, send reminders to batches of prospects, target marketing by demographics and past purchases, automate appointment scheduling, close deals faster and stay in touch after the sale.

As your real estate business grows, relying on a bare-bones spreadsheet to record business dealings won’t cut it anymore. While spreadsheets might barely get the job done, they don’t have the capabilities to help you track hundreds or thousands of clients, prospects, and listings. That’s why 91% of firms with more than 11 workers use CRM software.

Real estate-friendly CRM can help you improve customer care, lead conversion, and sales. Hardly surprising, considering 74% of companies said utilizing their CRM improved access to customer data. The key takeaway here is to make correct use of real estate CRM. How do you do that? That’s what we’re here to find out, so keep reading.

What can a real estate CRM do for you?

1. Track Clients

With a CRM, you can organize your client data and all relevant information about each customer in one place. It makes it easier to find their information at any time, including phone numbers or email addresses. That allows you to gain a 360-degree overview of every customer.

By tracking customers, you can gain more leads as tracking assists in identifying trends, planning for future listings or purchases, and identifying potential customers.

CRM software is particularly effective at this, helping track a target audience’s journey across devices and platforms, highlighting their interactions and purchases. That will help you pinpoint what works and what doesn’t so you can target your marketing effort more precisely.

It is the key to understanding and capturing valuable data about a customer, so you can better understand the customer and create a better customer experience.

2. Remind Prospects Without Hassle

The best CRM software will allow you to remind prospects without difficulty. All you have to do is select a batch of specific customers and send a particular message relevant to them with the click of a button.

It means you can send out helpful information and updates about your services or properties without spending hours on the phone or computer.

3. Economical Means Of Marketing

Real estate CRM allows you to target specific groups of people with customized messages based on their demographics, interests, and past purchases.

It means your target audience is more likely to click on your online ads as they are more relevant than the generic ones they would typically see from other real estate agents.

Such targeted ads mean you would only advertise on fewer websites and fewer times. That will bring down your advertising costs and land you more leads than generalized ads.

4. Schedule Appointments Effectively

Real estate CRMs can help automate the process of scheduling client appointments. You can set up an automated calendar so that when you have a new client, the CRM will automatically schedule an appointment.

You won’t have to worry about forgetting to schedule an appointment or double-booking. And if there’s ever any confusion about where a client needs to go or what they need to bring with them, the system will remind you.

5. Sealing Deals

A CRM helps you seal deals faster and easier. With a CRM, you have a centralized platform to keep track of all the essential information about your clients — their likes, dislikes, hobbies, birthdays, and children’s names.

That makes it easy to tailor your pitch when you meet them again for the next deal.

6. Enhance Customer Retention

Real estate CRMs improve retention by helping agents stay in touch with clients after closing a sale or purchase. The system lets you track previous customers’ complaints and suggestions. These will help you improve service delivery, hence keeping customers.

The automated emails feature also allows agents to send personalized messages at specific intervals, such as after each showing or when someone visits a new listing on their website. It helps maintain a consistent connection between agent and client over time.

7. Centralized Platform For Data Storage

Real estate CRM software provides a centralized platform where you can store all your data. It means you can view, analyze and manage all your clients and properties in one place, which saves you time and money.

You can access your information from any device with an internet connection, so there’s no need to carry binders or folders full of paper records.

8. Improves Productivity

Real Estate CRM helps agents increase productivity by automating repetitive tasks like follow-up calls and emails, scheduling appointments, and generating reports on time spent working with each client.

It allows agents to spend more time on high-value activities such as prospecting for new business or finding ways to improve their processes.

Which CRM software works for real estate?

Some of the top CRM tools available include:

I) Podio

Podio is a top recommendation for anyone looking for a basic CRM solution. It has all the essential functionality you need: contact management, scheduling calendars, email campaigns, and drip marketing tools.

II) InvestorFUSE

InvestorFUSE is among the best CRM software on the market today. It has an intuitive and easy-to-use interface for efficient and effective team supervision—a smart choice for anyone who needs to manage their contacts and leads.

III) FreedomSoft

FreedomSoft allows users to create relationships with their customers based on how they communicate with each other—via email, phone calls, or social media. The CRM also offers advanced analytics and data mining to see what customers say about your brand online.

IV) REI BlackBook

REI BlackBook integrates seamlessly with other apps like Google Analytics so that you can keep track of all your customer information in one place.

Why does a real estate business need a CRM?

CRM software is essential for any real estate company looking to provide the best customer experience possible. As you know, the real estate industry is constantly changing, and the best way to stay competitive is to keep up with these changes.

CRM software allows you to provide a central location where you can store and access customer data anytime. It means you’ll never have to worry about losing track of important information about your clients or forgetting their needs as they change over time.

CRM software also helps you streamline your business processes, so you spend less time on manual tasks and more time doing what matters most: assisting customers in finding their perfect home.

Interested in exploring Real Estate Opportunities? Get in touch with us.

Frequently asked questions

What is a real estate CRM?

A real estate CRM is software that keeps every client, prospect and listing on one centralized platform. It stores phone numbers, email addresses, past purchases and personal details such as birthdays, so you can find anything at any time. Because it runs online, you can reach your records from any device with an internet connection instead of carrying binders of paper.

Is a spreadsheet enough to manage real estate clients?

Not once the business grows. A spreadsheet can might barely get the job done, but it cannot track hundreds or thousands of clients, prospects and listings. That is why 91% of firms with more than 11 workers use CRM software, and why 74% of companies said their CRM improved access to customer data.

How does a CRM help real estate agents keep clients?

A CRM helps you stay in touch after a sale or purchase closes. It records past clients’ complaints and suggestions so you can improve your service, and its automated emails send personalized messages at set points, such as after a showing or when someone views a new listing. That steady contact keeps the relationship going between deals.

Can a real estate CRM schedule appointments automatically?

Yes. You can set up an automated calendar so the CRM books an appointment as soon as a new client comes in. That prevents forgotten or double-booked appointments, and the system reminds you where a client needs to go or what they need to bring, which frees your time for prospecting and other high-value work.

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If you simply need more information, have questions, or want to discuss a specific deal, I’m always excited to help. Reach out to me at info@redpillkapital.com

If you are ready to start your journey to financial freedom but want specific additional educational materials, we have a course designed for physicians.

In July 2022, Goldman Sachs economists and former Treasury Secretary Larry Summers warned that inflation would outlast the summer. The Russia-Ukraine conflict, supply-chain shortages and rising housing and rent costs kept prices climbing, with the all-items index up 9.1% over 12 months.

Editor’s note, August 2026. This piece was published in July 2022 and describes the market as it stood then. Where it stands now, from Federal Reserve data: the median U.S. home sale price is $410,700 (Q2 2026), below the $442,600 peak of Q4 2022; the federal funds rate is 3.63%, down from a 5.33% peak in August 2023; the 30-year fixed mortgage averages 6.66%, down from 7.79% in October 2023; and consumer prices are rising 3.3% year over year. Sources: FRED series MSPUS, FEDFUNDS, MORTGAGE30US and CPIAUCSL.

Inflation and its effects on the quality of life are a growing concern for most Americans. The mounting cost of living affects everyone as they have to deal with rising fuel and food prices yet contend with stagnant pay packets. But there’s a silver lining coming up soon, right? Not according to Goldman Sachs economists. They think the dark days are far from over. So why are they so bullish about the gloomy days ahead? That’s what we’re here to find out, so buckle up for a bumpy ride. A shopper standing at a supermarket checkout holding banknotes

What caused inflation in 2022?

  Food prices rose 9.4% from April 2021, the highest rise in over 40 years. The Food and Agriculture Organization (FAO) reported an increase in the monthly food price index, up 12.6% from February to March 2022, the most significant rise since 1990. Most experts blame Russia’s invasion of Ukraine and pent-up consumer demand post-pandemic. Moreover, there was a surge in global prices of coarse grains and wheat, mainly due to disruptions from Ukraine, the world’s largest wheat exporter, and Russia, one of the world’s largest suppliers of oil and wheat. The World Economic Forum states that 16% of Americans are struggling financially. On the 11th of May, Economist Mohamed El-Erian told CNBC that it was only a matter of time before Americans grappled with a “cost of living crisis.” The all-items index rose 9.1% in 12 months before seasonal adjustment. To counter this, the Federal Reserve decided to fight fire with fire by making a 0.75%-1% interest rate hike, the largest it had made in 22 years.
Twelve-month changes cited in this article. Bars are scaled to the largest value; the final row is a fall, not a rise.
Gasoline
almost +60%
Commodities
+11.7%
All items (CPI)
+9.1%
Electricity
+1.6%
Inflation-adjusted income
−3.6%

How did the pandemic lead to high inflation?

  When Covid-19 struck, many countries around the world went into lockdowns. That set off a chain reaction of events, including factories shutting down, businesses shuttering, and work from home becoming a thing. Most governments stepped in, providing support to keep the economy alive and people out of poverty. Because of the non-existent opportunities to spend it, many people built up unexpected savings. When governments lifted the restrictions, people instantly poured these savings back into the economy—cue pandemonium. The challenge is that many countries worldwide, especially China, the world’s factory, still face intermittent lockdowns. So, as people pumped money into the economy, businesses could not keep up with the demand, and prices climbed. Inflation has since cooled — consumer prices were rising 3.3% year over year as of July 2026, against a peak above 9% in mid-2022. Another major culprit is the housing market. The median home sale prices climbed steadily throughout 2022, hitting an all-time record of $407,600 in May 2022 due to feverish demand despite higher mortgage costs. That presents a problem on several fronts:
  • The high prices are eating into people’s disposable income
  • First-time buyers can’t afford homes, so they can only lease
  • That will keep driving rent prices up as embattled landlords try to keep up with demand and jacked up mortgage rates.
Inflation isn’t always a bad thing. However, when the prices of items keep increasing for too long, it becomes a cause for concern. That probably explains the Federal Reserve’s “wait-and-see” strategy before it finally clamped down on inflation.  

How long was inflation expected to last in 2022?

  Experts suggest that inflation will remain as long as the Russia-Ukraine conflict continues to aggravate the effects of the Covid-19 pandemic. Various indicators like soaring transport costs, shortage of key inputs for production, a shock to energy markets, and extremely long suppliers’ delivery times seem to persist despite governments’ and private enterprises’ best efforts. Eventually, these supply issues will ease as the supply chain adapts, demand weakens, or the Russia-Ukraine conflict ends. If wages rose in line with inflation, there wouldn’t be cause for concern because purchasing power would remain the same. Then there’s the housing market. As Larry Summers, the 71st Secretary of the Treasury, points out, the consumer price index (CPI) isn’t an accurate gauge of the economic environment. He warns that inflation will get a lot worse in 2022. Here’s why. Summers warns that the current environment mirrors the events of 1983, where the CPI didn’t factor in the effects of the housing market, as they didn’t factor in aspects of housing between 1953 and 1983. The kicker? While inflation has hit 9.1%, Summers thinks inflation might be a lot worse than the official figures suggest. He and plenty of others believe the only way to combat the current inflation is to raise interest rates even further and inflation with it, a move which seems on the horizon judging by the current mood at the Federal Reserve. Although the Federal Reserve’s current interventions mean mortgage rates skyrocketed past 6%, the highest since 2008, it has done little to cool down the housing market. And it’s easy to see why. The magnitude of the hiked consumer price index and the delay in transmitting its impact mean it will take time for the market to feel the spillover between home sales and rents.
Consumer price index for people renting their primary residence, per the Bloomberg model cited below.
PeriodRent CPI
March 2022 (actual)4.4%
September 2022 (projected)7.4%
If anything, a Bloomberg model expects the CPI for people renting their primary residence to accelerate from the current 4.4% (March figures) to 7.4% in September 2022. That will only decelerate if rents slow down substantially.  

Will Real Estate Beat Inflation Over Time?

  While employment is still strong, and the price of commodities such as meat, eggs, poultry, and fish slumped 1.8% in June 2022, inflation-adjusted income is down 3.6% from last year, and commodities prices are up 11.7% annually. Further, medical care costs rose on the month, gas jumped almost 60% over 12 months, and electricity rose 1.6% on the year. The data isn’t encouraging, so word on the street is that the Fed wants to jack up interest rates closer to the 2% range. So, can real estate survive depressed wages, sky-high mortgage rates, and spiraling inflation? That will depend on how fast rents slow. However, expecting rents to slow is a long shot, considering rent yield naturally grows with time. That’s not even considering the interest rate hikes that inevitably raise mortgage prices, which predictably leads to rent increases. Although mortgage rate hikes lead to increased rents and inflation, you can bet on real estate as inflation helps if you use cash-flowing real estate to offset a long-term interest rate debt. Here’s how:
    • Enhanced cash flow: if you have a fixed mortgage rate, the interest and principal payments remain fixed over time, so yearly rent increases go straight to your pocket, minus the minuscule rise in inflation-assisted operating costs.
    • Asset price inflation: The equity in your home will grow faster during inflation as the valuation of housing rises.
 
Detached suburban houses on a quiet residential street under a cloudy sky
 

Final Word – What Americans Should Expect

  Americans may need to strap in as the crisis hits record highs and shows no sign of letting up this summer. Tighter household budgets and lower purchasing power will be the norm for the next few months, but you can leverage real estate to beat inflation, however daunting it seems.

Frequently asked questions

How high did inflation get in 2022?

Very high. The all-items consumer price index rose 9.1% over the 12 months before seasonal adjustment. Food prices rose 9.4% from April 2021, the biggest jump in over 40 years, and gasoline rose almost 60% in a year. The Federal Reserve answered with a 0.75% to 1% interest rate hike, its largest in 22 years.

How does inflation push rents up?

High home prices keep first-time buyers from buying, so they rent instead, and that extra demand drives rents higher. Interest rate hikes raise mortgage costs, which also feed into rents. A Bloomberg model expected the consumer price index for renters to climb from 4.4% in March 2022 to 7.4% in September 2022.

How does inflation affect a rental property with a fixed-rate mortgage?

With a fixed-rate mortgage, the interest and principal payments stay the same over time. Yearly rent increases therefore flow to the owner as cash, minus the small rise in operating costs that inflation brings. At the same time, rising housing values grow the equity in the property faster during inflation.

What is the inflation rate now?

Inflation has cooled since 2022. As of July 2026, consumer prices were rising 3.3% year over year, down from a peak above 9% in mid-2022. The federal funds rate stands at 3.63%, the 30-year fixed mortgage averages 6.66%, and the median U.S. home sale price is $410,700, below its late-2022 peak.

www.redpillkapital.com If you simply need more information, have questions, or want to discuss a specific deal, I’m always excited to help. Reach out to me at info@redpillkapital.com If you are ready to start your journey to financial freedom but want specific additional educational materials, we have a course designed for physicians.

FHA loans suit lower credit scores, starting at 580 with 3.5% down, but carry mortgage insurance and higher rates. Conventional loans need a 620 score and at least 3% down, and the insurance can be dropped at 20% equity. VA loans need no down payment or mortgage insurance, but only eligible service members, veterans and qualifying spouses can use them.

For many, owning a home is an exciting dream, and one of the best ways of achieving that is through a mortgage. Taking on a mortgage is necessary if you don’t have the cash to pay the cost of a home upfront. Several real estate investment consulting firms offer incredible benefits, such as investment in property opportunity zones. In fact, when choosing the best mortgage option, it’s crucial to have clear facts about how much money you’ll need to present, how high your credit score should be, and whether you’ll need extra money to pay for the mortgage insurance. If you’re considering taking a mortgage but are unsure where to start, let alone which loan to take, keep reading. In this article, we discuss three of the best mortgage options–conventional loan, FHA, and VA loan–their differences and advantages.

What is an FHA loan?

The Federal Housing Administration (FHA) insures an FHA loan. If you have low credit scores, then you should probably apply for the FHA loan. Moreover, FHA loans require a lower down payment compared to conventional loans. To borrow the value of a home using FHA, arm yourself with a 580 credit score and a 3.5% down payment. With an FHA loan, you don’t get the loan directly from the FHA. Instead, the FHA guarantees and insures your loan from approved lenders, banks, or financial institutions. As such, your lender is at a lesser risk because the FHA will pay the claim if you default. FHA borrowers who get approved must purchase mortgage insurance and make premium payments to the FHA.

What were the FHA loan requirements in 2021?

The FHA-approved lender will gauge your qualifications as it would any mortgage applicant. However, instead of evaluating your credit report, a lender may scrutinize your work history and payment records for the past two or three years. Additionally, you need a front-end debt ratio (your monthly mortgage payments, mortgage taxes, and insurance) at a maximum of 31% of gross monthly income and a back-end debt ratio (your mortgage payment plus all other monthly debts) at a maximum of 43% of gross monthly income. However, it’s crucial to note that the lower your credit score and down payment, the higher the interest rate you’ll need to pay on your FHA mortgage.

Advantages

● You don’t need exceptional credit scores. ● Low down payments. ● You can build your equity sooner and stop renting earlier. ● Suffering from bankruptcy or foreclosures does not hinder your ability to get an FHA mortgage.

Disadvantages

● Since you have a poor credit score, one requirement is paying mortgage insurance upfront and annually to protect the lender from default risks. ● You’ll have to meet stringent property requirements. ● You will pay higher interest rates to compensate for the low down payment. FHA Loan requirements for 2021  

What is a conventional loan?

Like any other ordinary loan, this mortgage loan is not backed or insured by the government. Instead, private lenders guarantee it, while the borrower pays the insurance. Conventional loans are available through various mortgage lenders, such as banks, credit unions, and online lenders. There are two types of conventional loans–fixed and adjustable-rate loans. A fixed-rate conventional loan charges constant interest, while an adjustable-rate conventional loan changes interest rates according to market conditions. Conventional loans are riskier because the government does not back them. Therefore, it can be harder to meet the requirements than FHA or VA loans.

How do you qualify for a conventional loan?

Build up your credit score to 620 and have at least a 3% down payment to be eligible for a traditional mortgage loan. The private lenders will verify your documentation, including recent payment records, bank statements, tax returns, and other financial information. They want to ensure you have a solid income that can meet monthly mortgage payment obligations on time. Next, the lender will evaluate your debt-to-income (DTI) ratio (other debts you need to pay each month, including loans and credit card debt). The DTI ratio should not exceed 43%, although some might accept a ratio of up to 50%. Conventional Loan Qualifications  

Advantages

● You can cancel the mortgage insurance once you reach 20% equity in the home. ● They offer flexible repayment terms. ● The conventional loan rate is lower than FHA loans. ● Conventional loans are flexible and offer options for second homes and other similar real estate investment opportunities. This means the borrower does not have to occupy the property.

Disadvantages

● They do not allow projection-based financing ● Require a lot of collateral ● They feature restrictive agreements.

What is a VA loan?

A Veterans Affairs (VA) loan is a mortgage loan established and backed by the U.S. Department of Veterans Affairs. They are available to service members, veterans, or those who were discharged. Private lenders, such as mortgage institutions and banks, provide these loans. However, if the borrower defaults, the VA offers a settlement.

Who Qualifies For A VA Loan?

You must complete 181 days of active service during peacetime and at least 90 consecutive days of active service during wartime. Alternatively, you must be the spouse of a service member who lost their life in the line of duty or who has a service-connected disability.

Advantages

● No down payment ● Lowest interest rates ● No mortgage insurance ● You can finance the total value of the home qualifies for a VA loan  

Disadvantages

● Mandatory funding fee ● Strict appraisal and inspection

Which Is Better?

To find the best option between FHA vs. Conventional vs. VA loans, you need to consider your preferences, needs, finances, and qualifications. While the VA is exceptional as there are no down payments necessary, only war veterans or their spouses qualify. You don’t need exceptional credit history to get an FHA loan, but that also means high interest rate payments and mandatory insurance payments. On the other hand, a conventional loan offers flexible repayment terms, and you can opt out of insurance payments once you get to 20% equity. Choosing one over the other will depend on your financial situation. Apart from that, one can gain several benefits through diversifying their portfolio. For example, you can save money on taxes by following the 1031 exchange process and making wise investment decisions.

Frequently asked questions

What credit score do you need for an FHA loan?

An FHA loan starts at a 580 credit score with a 3.5% down payment. Instead of leaning on your credit report alone, the lender may look closely at your work history and payment records for the past two or three years. The lower your score and down payment, the higher the interest rate you will pay.

Can you remove mortgage insurance from a home loan?

It depends on the loan. On a conventional loan, you can cancel the mortgage insurance once you reach 20% equity in the home. FHA borrowers must pay mortgage insurance, both upfront and annually, to protect the lender. VA loans carry no mortgage insurance at all, although they do charge a mandatory funding fee.

Do VA loans require a down payment?

No. A VA loan requires no down payment and no mortgage insurance, and you can finance the total value of the home. The trade-offs are a mandatory funding fee and a strict appraisal and inspection. Private lenders make the loans, and the U.S. Department of Veterans Affairs backs them.

What debt-to-income ratio do you need for a mortgage?

For an FHA loan, your housing costs should stay at or below 31% of gross monthly income, and your housing costs plus all other monthly debts at or below 43%. For a conventional loan, lenders want a debt-to-income ratio of no more than 43%, although some accept up to 50%.

Can you get an FHA loan after bankruptcy or foreclosure?

Yes. A past bankruptcy or foreclosure does not stop you from getting an FHA mortgage. You also do not need exceptional credit, and the down payment is low. Expect to pay mortgage insurance and a higher interest rate, and to meet strict property requirements.

www.redpillkapital.com If you simply need more information, have questions, or want to discuss a specific deal, I’m always excited to help. Reach out to me at info@redpillkapital.com If you are ready to start your journey to financial freedom but want specific additional educational materials, we have a course designed for physicians.

The commercial real estate trends to watch in 2022 were brick-and-mortar retail, the return to the office, senior living, housing markets, Federal Reserve interest rates, self-storage, business travel, mixed-use developments, digital real estate and smaller suburban offices on shorter leases. Industrial and multifamily led activity across the asset classes.

Editor’s note, August 2026. This piece was published in March 2022 and describes the market as it stood then. Where it stands now, from Federal Reserve data: the median U.S. home sale price is $410,700 (Q2 2026), below the $442,600 peak of Q4 2022; the federal funds rate is 3.63%, down from a 5.33% peak in August 2023; the 30-year fixed mortgage averages 6.66%, down from 7.79% in October 2023; and consumer prices are rising 3.3% year over year. Sources: FRED series MSPUS, FEDFUNDS, MORTGAGE30US and CPIAUCSL.

Thanks to increasing demand and a recovering economy, the real estate market is on an upward trend for 2022. There is a rise in activity in all the asset classes, with the leaders being industrial and multifamily.

In 2022, this upward trend will continue as investors and tenants alike demand more real estate variety. The mortgage interest rates forecast for 2022 is 3.6%, which could impact the market. That said, this is what to expect from commercial real estate investing in 2022.

1. Brick-And-Mortar Retail Stores

The pandemic brought about a surge in online shopping, while sales in traditional brick-and-mortar stores declined due to social-distancing requirements. The share of e-commerce retail sales rose from 16% to 19% in 2020 compared to pre-pandemic 2019. Brick-and-Mortar Retail Stores   Even though online shopping offers advantages like convenience and saving on time, many consumers still prefer shopping in person. Brick-and-mortar shops allow consumers to shop for items that require accurate sizing and a proper fit. More online business owners will likely push the demand for brick-and-mortar properties. For instance, Amazon recently announced its first-ever physical store for men’s and women’s fashion, Amazon Style. The store is set to offer an elevated shopping experience and will open later in the year.

2. How Is The Return To The Office Changing Office Space?

Even though offices remain the hub for business activities, employees now have flexible work-from-home options. Employees can skip the daily work commute for a few days a week. During the height of the pandemic, millions of employees worked from home. However, as things slowly return to normal, statistics show that an increasing number of employees prefer the more flexible work-from-home model. Real estate investors must keep an eye out for days when all the employees are in the office for teamwork, which creates a need for bigger office space. That may call for a rethink of the workspace design, as buildings have to conform to the new reality of preventing communicable diseases.

3. Senior Living

With increased life expectancy, there is a growing demand for senior living homes and skilled nurses. The demand is not just about buildings as investments, but the increasing need for places where the elderly can feel safe, protected, and cared for. Life expectancy is expected to rise to 85.6 by 2060. Baby boomers are growing old and will need skilled nursing and more senior living homes. Covid-19 caused a decline in the move-ins, leading to a drop in occupancy rates. Even though there is a growing demand for senior homes now, percentages are still lower than what they were pre-pandemic.

4. Housing Markets

Post-pandemic, consumers are looking for affordable rents and home prices, which in turn will limit home price appreciation and rent growth. Millennials aged 26 to 35 are in the prime first-time homebuyer age and need affordable housing despite the slight increase in mortgage rates to 2.9%. Rising rents, as high as 7.1%, will further drive millennials to purchase homes. The markets for home purchases and apartment rentals are usually polar opposites of each other. When the rental market is strong, the housing market is soft, and vice versa. The pandemic created a desire for more space, as more people adopted a work-from-home model. This directly affects the rental and housing market, driving them to record highs.

5. The Federal Reserve And Interest Rates

Inflation is expected to continue above the trend and will likely decrease as the year progresses. The majority of the Federal Reserve members predict three interest rate hikes in 2022. They also expect that the increased interest rates will help fight inflation. Long-term real estate interest rates will remain low, providing attractive financing conditions for investors. The consumer price index rose to its highest level in 30 years. However, this does not account for the unpredictable swings during the pandemic’s short period. The bottlenecks in the supply chain are still present and will continue to be for some time. The shortages in key commodities and goods are likely to continue and fuel high prices in the middle of the year. However, things are likely to cool down toward the end of the year. The Federal Reserve and Interest Rates  

6. Self-Storage

Self-storage outperformed expectations during the pandemic with an average profit margin of 41%, higher than other real estate niches. The increased strength in the apartment and housing markets positively affects self-storage. Due to the pandemic, more and more people needed to move stuff out to create space for study and work-at-home situations. Further, millennials are starting families, meaning an increasing number of people will look into self-storage. The same goes for college graduates living in cities where living space is at a premium. Before getting into real estate, it pays to understand tax benefits such as the 1031 exchange process to save money on profits and investments.

7. Conventions And Business Travel

During the height of the pandemic, business-related travel halted, with most meetings and conventions moving online. Hotels, entertainment, and restaurants catering to business meetings can expect a recovery in 2022. Selling a new product or closing a major deal is always best done in a face-to-face meeting, thus increasing the need for hotels, meeting spaces, and entertainment spots.

8. Why Are Mixed-Use Developments On The Rise?

An overarching trend is the migration of urban users to decongested areas, leaving vast office spaces unused. To utilize the available urban spaces and provide better value, commercial real estate investors will likely turn to mixed-use developments. That way, commercial developers can stem the tide toward residential properties by having all amenities, such as retail, commercial, and residential properties all under one roof. Mixed-use developments look like the best way to attract a new market.

9. What Is Digital Real Estate?

Digital communications surged during the pandemic since people relied on them for work, e-commerce, and entertainment. Even as the economy opens, people continue to rely on digital communications because of the conveniences they offer. This leads to a demand for cell towers, data centers, and logistics facilities, which counts as growth in commercial real estate.

10. Smaller Is Better

What the market has reaffirmed is that nothing stays static forever, so there is some wisdom in moving with the times. Currently, companies are hesitant to commit to long-term leases, hence the shift toward shorter-term leases. Further, as employees seem to prefer the hybrid working model, it makes sense to opt for small working areas, or even smaller ones situated closer to workers’ residential areas. So investors are likely to target smaller suburban offices.

Final Word

While interest rates are set to rise during the year, it doesn’t create much of a worry for commercial real estate players as they expect a commensurate rise in the economy. Also, a few top commercial real estate management companies smooth the process for investors to get through the hassles involved. That said, some of the trends you should expect from the commercial real estate market include a rise in hospitality spaces, workspaces, and brick-and-mortar retail spaces.

Frequently asked questions

What were the biggest commercial real estate trends in 2022?

The trends to watch in 2022 were brick-and-mortar retail, the return to the office, senior living, housing markets, Federal Reserve interest rates, self-storage, business travel, mixed-use developments, digital real estate and smaller suburban offices on shorter leases. Activity rose across every asset class, and industrial and multifamily properties led the way.

Where do interest rates stand now?

As of August 2026, the federal funds rate is 3.63%, down from a 5.33% peak in August 2023, and the 30-year fixed mortgage averages 6.66%, down from 7.79% in October 2023. The median U.S. home sale price is $410,700 (Q2 2026), below the $442,600 peak of Q4 2022, and consumer prices are rising 3.3% year over year, per Federal Reserve (FRED) data.

Why did self-storage do well during the pandemic?

Self-storage outperformed expectations during the pandemic, with an average profit margin of 41%, higher than other real estate niches. People needed to move belongings out to make room for studying and working from home, strong apartment and housing markets lifted demand, and millennials starting families and graduates in crowded cities added more renters.

Why are companies moving to smaller offices?

Companies are hesitant to commit to long-term leases, so they are shifting toward shorter-term leases. With employees preferring a hybrid working model, it makes sense to rent smaller work areas, often closer to where workers live. That is why investors are likely to target smaller suburban offices.

www.redpillkapital.com If you simply need more information, have questions, or want to discuss a specific deal, I’m always excited to help. Reach out to me at info@redpillkapital.com If you are ready to start your journey to financial freedom but want specific additional educational materials, we have a course designed for physicians.