The economy for commercial real estate has certainly shifted.

Dr Kohl has suggested that real estate will stay strong as wealthy Boomers shift to supposedly lower risk tangible investments as a store of wealth rather than a wealth generator.  Can even private equity or pension funds, much less other generations with a much smaller share or the wealth, stand in the way of that tide and stay solvent long enough to be right?  Doubtful.  Just wait it out which will take 15 years.  Can you or I compete with someone who doesn’t need to cash flow the debt service, and/or needs no return on investment other than maybe a couple percent to inflation?

Rising interest costs seem like they will have to hit home sometime soon.

There currently seems to be a structural imbalance in the housing market, with owners pushing for continued low density zoning and lots of barriers to entry that keep housing prices high, and new buyers seemingly priced out of the market yet still trying with what seems like voracious demand.  Will housing debt service for Gen Z be the next bubble to pop?